Saturday, August 8, 2009

Sales Tax Holiday

Wow! We get a holiday from paying sales tax. Everybody loves it. Retail Sales go through the roof. The lines at the Apple stores are as long as a football field. Everyone talks about it and buys something. Consumers are not as dumb as Washington thinks. We know a good deal when we see it and we take advantage of it.

Does Washington, the states, the counties, the cities want to spur the economy? Drop the sales tax. If consumers are the largest portion of GNP, so say the economists, then do something like dropping the sales tax to spur consumer demand. Clearly, the holiday from sales tax results are proof. In other words, pass legislation that is expressly directed at accelerating consumer sales, albeit cash for clunkers, rather than legislation that supports the AIGs of the world.
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