We Knew It Was A Mistake
When the Bush administration made the mistake of handing billions of dollars to the auto industry we all knew that everyone else was soon going to get in line.
Well the line has started and the first in line is the country’s largest retail trade association who asked Obama to add a series of sales tax-exempt shopping days to a coming economic stimulus package in an effort to revive consumer confidence and spur spending.
They are asking for three periods of sales tax-free shopping that would last 10 days each in March, July and October 2009.
So how will the industry group’s proposal work? Very easy, they figure consumers are going to go out and shop like mad, they will reap great profits and then all the federal government would have to do is reimburse states for the lost tax revenue?
State sales tax rates range from 2.9% to 7.25%, the group said but what really makes this such a great idea. the five states without a sales tax — Alaska, Delaware, Montana, New Hampshire and Oregon — would also receive monies.
The big question I have here is how does this idea revive consumer confidence ?