taxation product sales taxes upon clothing
Excerpt from Dissertation:
The tax vacation was very likely to benefit families that experienced “the throw away income to buy an $80 sweater because of their teen”(De La Torre 2008). To extend this kind of argument, the effect upon sense of balance price and quantity demanded by such non-price very sensitive consumers was negligible, leading to no net benefit for the state’s stores or middle-class consumers. The sales tax holiday on apparel was as equally regressive as a florida sales tax on garments – someone buying a $500 pair of Prada boots has got the same exemption as a poor woman ordering her child a much needed new college uniform, through the holiday period, in contrast to the periods of time if the sales tax was imposed on goods over $75.
Nevertheless why places a florida sales tax on clothes, any type of clothing by any means? Making the exemption in clothing on items just below a certain amount seems arbitrary. Perhaps shoes and boots in excess of $110 in Nyc or $75 in the condition of Connectivity seem like luxuries but the same may not be the case of a new winter coat or sturdy couple of books, or perhaps basic athletic equipment certainly not provided by the school for a kid, such as jogging shoes. A parent of modest means might nonetheless find him or their self unduly penalized. Imposing value ceilings upon certain goods rather than a consistent price roof on the florida sales tax, such as kid’s school outfits would likewise not cover all of parent’s spending demands for their kids, nor possibly adult’s basic needs above $110 or perhaps $75 for sure items. Thus, despite the revenue loss for the state, in the interest of fairness, the elimination of sales tax on clothing would be beneficial, and might help consumers and merchants alike, as more price-sensitive consumers might be more ready to buy more costly, nevertheless high-quality goods in excess of $110 in New york city State and $75 in the state of Connecticut.
Chamberlain, Andrew. (31 Dec 2006). ” New York Democrats call for permanent sales tax holiday. inch Tax Plan Blog: Established weblog of the Tax Base. Retrieved 15 Sept 2008. http://www.taxfoundation.org/blog/show/1325.html
Entre ma Torre, Vanessa. (2008). “State’s tax holiday break on clothes, shoes starts Sunday. “
The Hartford Courant. Retrieved 15 Sept 2008. http://www.courant.com/news/local/hc-cttaxfree0816.artaug16,0,2152521.story?track=rss
Exemptions from sales and use taxation. ” (2008). The State of Connecticut:
Department of Revenue. Recovered 15 Sept 2008. http://www.ct.gov/drs/cwp/view.asp?a=1477q=269920
Sales and use fees. ” (2008). NYC Fund. Retrieved 15 Sept 08. http://www.nyc.gov/html/dof/html/business/business_tax_nys_sales.shtml
Sales tax on clothes