Tag Archives: stimulus plan

Retailers Ask Obama for Sales Tax Holiday

I got this interesting link in my email yesterday. Apparently, in an effort to stimulate consumer spending,  the National Retail Federation has asked President-elect Barack Obama to include a series of sales tax holidays in his upcoming economic stimulus plan. After a dismal holiday shopping season, retailers are really hurting for sales. The NRF proposed that tax holidays be held during March, July and October 2009, each lasting 10 days, including two weekends.

Many states already have sales tax holidays. Past holidays have been limited by dollar amounts or on certain items like clothing. In this proposal, the sales tax would be lifted on almost all taxable goods other than cigarettes and alcohol. The US Government would then reimburse all 45 states that have a sales tax. By temporarily lifting the sales tax for the three 10-day periods, the NRF estimates that consumers could save nearly $20 billion. Just think, that’s another $20 billion that the government will be handing out!

Your thoughts? Would it help you out?