Missouri has taken the remarkable step of taking a partial sales tax holiday. From Aug. 13-15, clothing, school supplies, and some computers will be exempt from sales tax.
That is so cool. It’s just fantastic to see state governments showing a little creativity and verve, not to mention real concern for, and help for, its citizens.
It’s curious, though, how everyone pretty much understands with crystalline clarity how a sales tax “holiday” can be expected to dramatically goose sales during that period. I.e., higher taxes on anything decrease it, less taxes increase it. This is true for income, for sales, for pretty much everything. If breathing were taxed, we’d hold our breath when we could. So why is this so hard to understand in larger context? Somehow, I suspect it’s not that hard to understand. I suspect that it’s just too easy to use for political points for the basic economics to make much of a difference at all.
Still, huzzah for Mizzou! It’s almost enough to make me want to move (for the weekend).

Leave a reply