Tax Free Shopping
People in the south are celebrating a new holiday and its tax free.
Last week Arkansas shoppers braved record high temperatures to join in on the first ever tax free shopping weekend. In February the state’s lawmakers approved the holiday to give parents a tax break on their back-to-school shopping; this included savings on clothes, school supplies and uniforms.
Clancy Graham is the owner of a boutique in Arkansas and says the amount of business brought in by dropping the tax was unbelievable. Graham says their sales goal was tripled and more money was made in that one weekend than over the entire month. But while shoppers are gleefully spending the state is feeling the pinch. Officials say the tax free holiday will cost the state about $2 million in revenue.
And Arkansas isn’t the first state to reward its shoppers. Texas, Mississippi and Florida have had a similar holiday for the past several years. They also hold theirs at the end of summer to ease the back to school burden. Washington should consider making this tax free holiday a national celebration. Maybe all this economy needs is a good shopping spree.