Sales Tax Holidays: Politically Expedient but Poor Tax Policy

Sales tax holidays - political gimmicks that divert attention from the real revenue issues that need to be addressed - may be popular, but it takes courageous leadership to steer the economic and political conversations   back on track.

Sales tax holidays introduce unjustifi­able government distortions into the economy without providing any significant boost to the economy. They represent a real cost for busi­nesses without providing substantial benefits. They are also an inefficient means of helping low-income consumers and an ineffective means of providing savings to consumers.   [Summary Study: Tax Foundation]