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Old 03-25-2020, 12:16 PM
Bill Door is offline
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Join Date: Nov 2003
Posts: 5,291
Quote:
Originally Posted by squeegee View Post
Well,

a) The working poor spend all their money, so having (in my county) 8.25% more of it to spend is pretty compelling I'd say.
b) Anyone buying something more expensive, say a $500 TV, will save $41 if they buy it before the tax holiday expires, which is a reasonably compelling reason to go get one sooner than later.
c) Local businesses would get some uptake from both these cases (the poor spend 8.25% more, the less poor buy more goods than they would in the next (say) 90 days).
d) Local governments get moderate stimulus from b and c.

Again, I'm not sold on this, but it's an interesting notion.
Thirty two states plus the District of Columbia exempt food sold for home consumption from state sales taxes. Six additional states tax food at a lower rate than other goods. After rent, also not subject to state sales taxes groceries are going to be the largest expenditure for the working poor. If passed it will save me quite a bit on my new car though. How many cars are poor people buying?