Several states have declared sales tax holidays, which the state does not collect sales tax on certain items for a short period of time. In most instances, the holiday has been for clothing, and the period has been a week or ten days in August, the idea being to give a “back to school” discount as families get ready for the new school year. However, states have gotten more adventurous with the idea in recent years and have enacted or proposed holidays for hurricane survival supplies, gasoline, Energy Star appliances, and guns and ammunition. Analyze the idea of such holidays according to yield, equity, administration and compliance and economic impact.
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