Respond to the following peer discussion 2

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Hello Dr. O’Neal & Classmates,

As the State Economic Director for the above scenario, the economic
impact of tax holidays of up to ten days in my state reflects. Tax
holiday for clothing and tax holiday for school supplies. There are only
16 states that still have the sales tax holiday this year. However
research reports that the states lost $300 million due to sales tax
holidays in 2016. It has been found that there are (2) factors involved
in eliminating the tax-holiday. 1) Policy-Makers are pressured by
constituents to concentrate on money, 2) The sales-tax holidays have not
produced a big economic growth, (Povich, 2017).

On the other hand, there are those that also states it has advantages
to have a sales tax holiday. 1) “It helps levels the playing field for
brick and mortar retailers who face stiff competition from online sales
many of which are tax exempt” (Povich, 2017, pg.3). 2) It generates a
buying spree and big advertising campaigns which is good for economic
growth. It is also noted that there are 5 states that have no sales tax
at all (AK, OR, MT, DE, NH)(Povich, 2017).

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