This paper examines the question on whether or not tax-free holidays should be eliminated. During any downturn in the economy, governments must investigate ways to increase revenue from taxes or decrease services offered the public. Eliminating or continuing tax-free holidays is a question that state legislatures offering the holiday must grapple with yearly. In answering this question, states must carefully examine how each of the stakeholders-government, retailers, and consumer-will be impacted. Based on preliminary findings, the researcher suggests that there is too much pressure from segments of all three stakeholder groups to eliminate tax-free holidays. Suggestions are made in the paper for further quantitative research that would provide more data in making this decision.
展开▼
