Tax free weekend

Discussion in 'Economy' started by alan1, Aug 8, 2009.

  1. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    As kids prepare to go back to school, many states offer a tax free weekend for all kinds of items; school supplies, clothes, computers, etc. As we know, consumer spending has been pretty low. A logical conclusion is that many people will take advantage of the tax savings and finally open their wallets. They will finally break down and spend money on things they probably would have purchased at some point anyways (clothes being a big one).
    The really interesting part about this will be when the MSM reports August sales. I can see it now, they will all be reporting "higher than expected retail sales", or "surprising jump in retail sales". It really won't be a "surprise" or "unexpected" to anybody with half a clue. Then they ( the MSM and probably Mr Obama as well) will proceed to announce that the economy is improving and the recession is weakening. But nobody, and I mean nobody will point out the fact that people are more inclined to spend money when the tax rates are lower, that their buying power is increased when the tax rates are lower.
    Just wait and see.
     
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  2. strollingbones
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    strollingbones Diamond Member

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    people are more inclined to spend money in times of full employment..which seems to be the forgotten subject
     
  3. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    Never heard of anything like a tax free weekend. I'm sure they won't have anything like that here in Illinois, the land of Lincoln and Obama... Illinois would tax sex if they could come up with a way to monitor your bedroom. I'm sure there will be no kind of a tax break here.
     
  4. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    2009 Tax Free Week - States Offering a Sales Tax Holiday or Tax Free Week
     
  5. xsited1
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    xsited1 Agent P

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    Isn't that gracious of our leaders in participating States to provide the commoners with a "tax free" weekend? What they are saying is, "look, we know taxes are oppressive and we know they are probably preventing you from buying things that you need, so why don't we give you little people a break one weekend out of the year? It's the least we can do. We'll even throw in some cake for you to eat since there's no bread."
     
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  6. RadiomanATL
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    RadiomanATL Senior Member

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    We had our tax-free weekend last weekend.

    We didn't really purchase anything big in the Radio household. Just some notebooks, pencils, etc for our oldest entering the second grade. Spent about $40. We already have everything else from last year (we don't believe in purchasing a whole new backpack and every little school supply every year).

    We did spend about $300 on clothes for our little second grader. Although it is because she is going to private school this year and we needed to purchase uniforms. Otherwise we would not have spent that amount of money.

    I just realized though that I may be a poor indicator of the point that is trying to be made in this thread. I'm a cheap ass and wouldn't spend a lot even if the unemployment went negative and the DOW went above 20K.
     
  7. RadiomanATL
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    RadiomanATL Senior Member

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    Yeah, but I'd rather have sales tax than income tax.

    With a sales tax I have the ability to control my finances more. With income, not so much.
     
  8. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    Yet, you spent that $340 on a tax free weekend. Now, imagine if 20 million households spent the same $340 tax free? That's $34 million dollars in savings if the sales tax was only 5%.
     
  9. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    Too bad I can't buy everything I need for the year on that one weekend.
     
  10. RadiomanATL
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    RadiomanATL Senior Member

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    Oh, I get your point, and I agree with it. I'm just a poor indicator for it. Like I said, typically I would have spent only the $40.
     

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