Your Views: State sales tax holiday would provide relief, lift economy

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Sunday, January 12, 2014

Doesn't Wisconsin need an economic boost to provide welcome tax relief for working families and stimulus to the economy? State legislators are working to do just that by way of an August sales tax holiday on back-to-school items.

Assembly Bill 108, introduced by Rep. Chad Weininger and Sen. Richard Gudex, would create tax-free shopping for items including clothing, computers and school supplies, in addition to a tax-free weekend in November for Energy Star-rated appliances. Nineteen states provide sales tax holidays.

Not only would consumers get a tax cut, but studies show that revenue collections to the state are not negatively impacted due to increased economic activity. States with sales tax holidays have experienced overall higher tax collections because sales of both taxable and tax-exempt items increase during sales tax holidays, as well as increased workforce and labor income.

A sales tax holiday would encourage customers from surrounding states to come to Wisconsin to not only shop but also spend their money at our restaurants, hotels and tourism attractions. For example, Illinois residents that come to the state could save up to 9 percent on their purchases by avoiding their sales tax.

It is easy to see why so many other states have been passing sales tax holidays; they have resulted in needed tax relief, stimulus to the economy and an overall increase in tax collections. Please contact your legislators and urge them to pass AB108 to create a sales tax holiday.


Alliance of Wisconsin Retailers

Menomonee Falls

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