The Murphy Administration’s “Back to School” sales tax holiday will run from August 27th to September 5th, Save Jerseyans, and Trenton Democrats’ latest gimmick is fetching scrutiny from the Right and the Left, too.
Republicans have complained that the savings – which include 7-cents on a gluestick – are comically poor substitutes for substantive, permanent tax relief.
At the end of July, the left-leaning Institute on Taxation and Economic Policy (ITEP) released a brief concluding that sales taxes holidays don’t accomplish much relative to other tax reforms.
One major drawback of sales tax holidays: they’re poorly targeted to the benefit the people they’re allegedly designed to assist.
“Wealthier taxpayers can receive the same benefit and have more flexibility to shift the timing of their purchases to take advantage of these tax breaks,” explained ITEP in its accompanying release, adding that “sales tax holidays aren’t limited to state residents or local businesses, as online retailers in other states are included.”
You can check out the full brief here.
