Do you have a tax free holiday in your area? Here, it's one weekend soon before the next school year begins. You don't have to pay sales tax on the stuff you buy your kids for school. It even includes shoes, garments, backpacks, and devices. If you have this available, how much do you think you'll save during this holiday? Is it worth waiting to shop during this time?
I''m sure they are a big help in saving money. Nonetheless, everyone else is a big loser. For instance, in 2016, 300 million in possible tax revenue (in the US) was lost because of these weekends. Also, many have argued that they don't supercharge economic activity because the whole focus of buyers is on the weekend, not the rest of the year. Anyway, how would you all compare tax-free holidays to stuff like Black Friday?
I remember someone being quite angry with me last year for talking about this. They said I was "stealing" money from the government if I took advantage of this opportunity. I like to think of it as stealing back what they steal from us, ha ha. We are taxed when we make it and taxed when we spend it. Anyway, that's another discussion entirely. I have found that I don't really save a ton of money during this, unless there are big sales scheduled at the same time. Yeah, every little bit helps, but I'm not sure it's worth waiting. For example, say the sales tax is 10% (just for a nice round number). There are often sales that offer a higher percentage off than that, like 20% or more.
Tax holidays are periods when consumers and producers alike tend to enjoy some benefits which, in the case of producers, is a way to boost their morale to keep producing and to encourage other new entrants into the market while the consumers enjoy some discounts during these periods. It is now one's decision to take as a producer or consumer to participate and enjoy the benefits of tax holidays. The flight tax holiday is active in my area now in which youth corps that are actively serving the nation book flight tickets without paying valued added tax and this is a great move to ensure these set of new graduates enjoy the period of serving the country.
