Illinois Legislators Jump on the Sales Tax Holiday Bandwagon
I should be more careful about what I say on this blog, because when I make crazy suggestions, people take my advice. When I asked whether longer sales tax holidays might be better than three-day ones, that was a rhetorical question. But now Illinois legislators are proposing a 10-day sales tax holiday to help people out with their back-to-school shopping in August. I predict that people will rearrange their shopping days to buy things during those 10 days, rather than later in the month. Kind of like how they react to Missouri’s sales tax holiday, only spread over a longer time period.
I hope Missouri and Illinois aren’t going to engage in an arms race of longer and longer sales tax holidays. If a state decides its sale tax is too onerous, it can lower the rate. That would help people and the economy all year round, and people wouldn’t have to change their shopping schedules in August.