Why Sales Tax Holidays Are Not Worth Celebrating

In the coming weeks, several states will exempt customers from sales tax on certain items during tax holidays. Ever since Ohio and Michigan created automobile tax exemptions in 1980, states have tried to boost consumption by temporarily removing the sales tax on specific products. While customers are eager for the deals, a new Tax Foundation report by Joseph Bishop-Henchman and Scott Drenkard illuminates how tax holidays disrupt the market and promote cronyism without providing any long-term economic benefits.