Posted tagged ‘income tax’

Retailers Request Bailout

December 27, 2008

salesignThe National Retail Federation has written a letter to President-elect Obama requesting a bailout of retail stores. Their plan is for three nationwide┬á10-day “sales tax holidays” that they hope will entice consumers back into the stores. The federal government would then “reimburse” states for the lost sales tax revenue, estimated at $20 billion.

When will the madness end?

If consumers aren’t spending their money during the traditional holiday shopping season, in spite of huge discounts, they aren’t going to spend it at other times of the year, sales tax holiday or not.

When people are losing jobs in enormous numbers they are far more concerned with paying their utility bills, mortgage or rent, and putting food on the table. A sales tax holiday is no incentive to spend money on non-essentials when you’re living hand-to-mouth.

The kicker to this plan is that the people who will supposedly benefit from it – the consumer paying no sales tax – will still end up paying that sales tax in the form of income tax or inflation. The federal government has to get the money to reimbuse the states from somewhere. Most likely it will come from you and me, one way or another.

Source links for this post:

New York Daily News
24/7 Wall St.
National Retail Federation