A new report from the Tax Foundation claims sales tax holidays, such as the one South Carolina will have next weekend, represent poor tax policy.
Executive Vice President Joe Henchman told South Carolina Radio Network that they provide no real continual tax relief. “There’re a gimmick, there’re not real tax reform, they’re not real tax reductions. Usually the sponsors of them are people who are opposed to actually meaningfully reducing people’s taxes,” said Henchman.
Budapes said naming of it is also a way to make it sound like it’s a good thing. “One weekend a year you’ll get a couple items tax free. Which of course in South Carolina it just that means it’s about seven or eight percent off which is not a sale that usually has people running to the stores. Tax free sounds a lot better,” Henchman said.
Henchman said that there are more efficient ways to provide relief. “Better approach might be something more targeted or something that reduces taxes year round rather than just one weekend.”
South Carolina is one of 16 states which still use sales tax holidays jn 2017, down from a peak of 19 states in 2010. South Carolina will hold a back-to-school sales tax holiday August 4-6 on certain educational items and clothing