Is Mississippi’s Sales Tax Holiday Really Worth Celebrating?
August 2nd, 2010
Amid the revelry of Mississippi’s second Sales Tax Holiday lays several important facts that call into question the wisdom of this much-celebrated tax policy.
First, the sales tax holiday is a poor way to target tax relief to low-income working families. The relief is not available during the other 363 days of the year, and, in fact, a Mississippi millionaire could qualify for the same tax break as long as an eligible purchase is made.
Second, after five rounds of budget cuts last year and the expiration of federal American Recovery and Reinvestment Act dollars this year, the revenue lost during the “holiday” will not be available for early childhood education or teachers in the classroom – two things that we know enhance opportunities for low-income children.
Finally, Mississippi does not really know how much revenue is lost over the course of the weekend, making it a tax break lacking in transparency and accountability. With a very large budget hole looming, every dollar counts. Mississippians should at the very least know the benefits and costs of the policies in play.
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