Tis the Season for State Sales Tax Holidays

In a rite becoming quite commonplace over the last decade or so, at least 14 states will hold a "sales tax holiday" to encourage purchases for the back to school period. While clothing and school supplies make almost every state's list, some states also include computers. Additionally, some states waive sales tax on different items such as hurricane preparedness supplies at other times of the year.

While retailers love the sales tax holidays and crafty shoppers can save money, there is some question whether the holidays are effective from a macro perspective of social welfare. Perhaps "good old fashioned" price competition by retailers would provide just as good a deal to consumers as the tax holidays with a lower tax loss to state treasuries.