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Monday, August 30, 2004

Sales tax holiday for school supplies

On the TV news tonight there have been stories about a proposal from DFL Representative Mindy Greiling to create a "sales tax holiday" for school supplies. From news reports, this holiday would have a limit of $25 per item that would be exempt from the state's 6.5% sales tax.

I am generally opposed to tax gimmicks like this. Limited Market Value, targeted tax breaks, and the like are all usually poor tax policy. Taxes should be consistent, easy to understand, and easy to apply. Tax holidays are not good policy.

But they may be good politics, which is why these proposals have been passed in other states and why Rep. Greiling is proposing it. I am more interested in good governance than with winning elections, which is probably why I will never be elected to any office.


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