2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation

While sales tax holidays have been politically popular for a long time, they have seen a boost this year as lawmakers look for ways to share surplus funds with taxpayers who are struggling to afford goods and services amid high inflation.

At first glance, sales tax holidays seem like great policy. But however well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.

By distracting states from addressing real problems with their tax systems, such political gimmicks undermine efforts to provide legitimate relief to consumers in general and low-income individuals in particular.

Source Tax Foundation

---

---