29 Comments - Siyotanka - Tuesday, Mar 25, 08 @ 10:26 am: Unless the tax holiday is geared towards boasting the production of products and not just to reduce inventory by enticing people to spend, it will do no good in the end. Except for the loss of revenue, the focus must be as stated previously. It just seems to reinforce our consumer attitude. - Siyotanka - Tuesday, Mar 25, 08 @ 10:27 am: boasting=boosting - RMW Stanford - Tuesday, Mar 25, 08 @ 10:27 am: Considering the number of financial short falls and problems the state already is facing, I cant see this adding to much to it. Then again I dont see it producing much in the way of benefit for the state either. I dont think that it will induce people to buy more than they would of otherwise, just changes the scheduling of when they will buy. - pickles!! - Tuesday, Mar 25, 08 @ 10:27 am: Not a big deal. Sounds like something that’s being done just for publicity. Now if the legislation called for a holiday on a gasoline tax, then you’d really get the interest of the people. - North of I-80 - Tuesday, Mar 25, 08 @ 10:31 am: Best way to find out would be a trial month of cutting taxes to 1/2 what they currently are, advertise it and see. My belief is that sales will go up Big if people know about it…. Anybody care to guess what would happen if all IL sales taxes were LOWER than the tax rates of all surrounding states? Rockford imposed an extra 1% sales tax year ago and guess what? City leaders are wondering why all of the big businesses are moving to just outside the city limits, to neighboring Loves Park and Machesney Park. It’s simple economics; lower costs by a few percentage points and people will come to spend their $. Want more businesses, economic growth? Cut taxes. Want to scare business and growth to next door neighbors? Raise fees and taxes. Nice job Kevin. - Ghost - Tuesday, Mar 25, 08 @ 10:45 am: I would say no. There is nothing tying the goods sold to manufaturing in this State, so it would mostly just help out of state manufacturers. If they are looking for economic stimulus, putting money back in the hands of residents such as a tax refund like the fed program is a much better way to stimulate spending. Not worth the loss of income, looks more feel good. We need more then a few feel good proclomations. - ahoy! - Tuesday, Mar 25, 08 @ 10:48 am: must be an election year. This is a horrible idea. - Levois - Tuesday, Mar 25, 08 @ 10:55 am: I would be worth it if instead of expanding state spending they would make cuts instead. Otherwise there wouldn’t be much worry about a tax holiday. Right now it might be critical to have such a holiday if Cook County and Chicago are seeking to raise their sales taxes. - Randall Sherman - Tuesday, Mar 25, 08 @ 10:58 am: I would have no objection whatsoever to seeing the May 23-26 sales tax break tried out, to see if it had any economic benefit. One place where that break would be a benefit would be at the COMPEX 2008 Postage Stamp Show that will be held (for the 51st year) in Arlington Heights at the forest view Educational Center (Disclaimer - I serve as VP of Publicity and as Secretary for COMPEX). - wordslinger - Tuesday, Mar 25, 08 @ 10:59 am: It’s a gimmick. Insignificant. - bored now - Tuesday, Mar 25, 08 @ 10:59 am: what would be the purpose of creating a tax holiday over memorial day weekend? if it’s a slow shopping period, why would a tax break change that much? this doesn’t seem to be a well-thought out proposal, likely a sop to some particular constituent or interest group… - Sir Reel - Tuesday, Mar 25, 08 @ 11:28 am: No. Clayborne’s proposal appears to be about school supplies. The House Repub’s seems to be simply an economic stimulus. I’m sure there’s lots of good things to encourage by a sales tax holiday, but where do you draw the line? There’s already too many permanent sales tax breaks. These could lead to more. - Poli-Sci Geek - Tuesday, Mar 25, 08 @ 11:34 am: In other states stores promote the sales-tax holiday but don’t offer any sales or coupons. People end up paying more for goods, the store makes better profits. It is a scam. Instead of getting 25% off with a coupon, you get 6% to 10% off. - so-called "Austin Mayor" - Tuesday, Mar 25, 08 @ 11:34 am: “The question of the day is, are proposals like these worth the lost revenue to the state?” It seems highly unlikely that this gimmick would have a positive net impact. – SCAM so-called “Austin Mayor” http://austinmayor.blogspot.com - VanillaMan - Tuesday, Mar 25, 08 @ 12:14 pm: Some of you people behave like a prom queen whose limo broke down in the rain, yet turning your nose up at the pick-up truck that offers you a ride. Get over yourselves! Little things add up, don’t they? When you are on the bottom of the state image heap, tax holidays are a good thing. Even Blagojevich’s SOS tax break proposals which are unlikely to be enacted are still an improvement over the past five years. There is no magic bullet. There is no grand political coalition that will cut through the self inflicted disasters were have suffered through. We have to take what we can and keep going. So either hop in the cab of that truck or watch your crinoline wilt, queenie! - Legal Eagle - Tuesday, Mar 25, 08 @ 12:38 pm: I say try it and see! It confounds some people that you can cut taxes, and thereby increase government revenues! But it works. - reasonable 1 - Tuesday, Mar 25, 08 @ 12:58 pm: Let’s try it and see! Something is better than nothing! - TaxMeMore - Tuesday, Mar 25, 08 @ 1:01 pm: “The question of the day is, are proposals like these worth the lost revenue to the state?” A better question might be, is the $40 million of taxpayer’s money being collected and spent now, worth holding a gun to poor, single parent’s heads in order for the state to collect and spend it? How much is being spent by the state on whimsical and even destructive entertainment right now, for one example? Cellular Field and the Illinois Sports Authority, horse racing subsidies, horse show prize subsidies, southern Illinois minor league baseball fields, the Wrigley Field purchase etc. Gotta be way more than $40 million a year. How many state retirees will be getting pensions of more than $100,000 and $200,000 a year and why do they deserve to have the poor people of Illinois pay for it? The so-called “lost revenue to the state” isn’t what needs to be justified. They should justify spending that $40 million of lost revenue to families and single parents and the working poor to being with. - Joe Schmoe - Tuesday, Mar 25, 08 @ 1:20 pm: Instead of cutting the sales tax on fuel, an effective long-range “gimmick” could be to cap the sales tax. I’ll be the first one to say the Illinois sales tax (both state & local) is a regressive tax that compounds the irritation about rising fuel prices. Especially since Illinois’ sales tax is imposed on the price of the fuel and the federal tax motor fuel tax. That’s a tax on a tax, and then some. - Princeville - Tuesday, Mar 25, 08 @ 3:49 pm: I think it’s a gamble and would like to know what will be ‘cut’ to replace the state renevue, which is always an important question to narrow down with this governor. I think what a lot of the plotters and planners just are not getting yet is that lots of citizens are not just hoarding their money like little squirrels their nuts, but have but peanuts left to spend on much else besides the raising cost of gas, groceries, utilities, ect. The first 2 weeks of August is the time parents usually have to dish out the registration fees and extra activities fees for the little juniors to get back into school. Many likely spread the cost over the month, registration/fees first and then supplies and perhaps clothing/shoes second. An early tax holiday won’t get them out to spend if the money is not in the household budget during that ‘holiday’. —oh, and taxmemore–a blanket statement on state retiree pensions as you made is totally misleading. Care now to tell what the average and majority of state retiree pension is now? And you should be just as worried about the little waste and oops the state makes with your taz dolars as you are about the larger items. Give away $1 million to wrong place, oops, $863,000 over payments in research agreement grants, oops, oops. It all adds up. - blagoman - Tuesday, Mar 25, 08 @ 4:11 pm: What about letting us buy gas over Memorial Day weekend without paying any state or local taxes? Now, that would be helpful to Ilinois citizens and promote travel within the state. - Enemy of the State - Tuesday, Mar 25, 08 @ 6:07 pm: I don’t know. I’m too busy going over to Missouri when they have their back to school sales tax holiday. It’s a great time to pick up a computer and some other electronic goodies. - Nearly Normal - Tuesday, Mar 25, 08 @ 7:05 pm: Florida used to do the sales tax holiday in August when students were getting outfitted for school. It used to be over a few days. The last time I was enjoying the heat and humidity a few years ago, it was only one Friday-Saturday. Don’t know if they do it now. - Expatriate - Tuesday, Mar 25, 08 @ 7:28 pm: The gas tax holiday over the Memorial Day weekend idea sounds like a recipe for disaster. What’s gonna happen when everyone in the state who owns a car tries to fill up his car(s), plus every 5 gallon container he can get a hold of? - Anon - Tuesday, Mar 25, 08 @ 7:53 pm: Those who can afford a bunch of stuff that qualifies during the specified periods will spend big, get a welcome tax break, and probably increase their credit ratings because of the credit purchases and immediate payoffs, further decreasing their general expense of “living”. Generally, I don’t think they’ll care about the “lost revenue”. Those who can afford less during those periods and have a need for school supplies, will spend less than the first crowd and get a smaller, but welcome break. They’ll probably wind up having whatever savings they realize (and more) taken away from them at the gas pumps, by the utilities to pay their CEOS, and by the banks in the form of “special” banking and credit card fees” so that the companies can contribute to political campaigns. Their credit ratings will continue to plummet, increasing their cost of living. They will worry about what impact the “lost revenue” will have on programs designed to help them save their homes in a year when things take even a bigger dive. Those who can’t afford anything because they’re fighting desparately to hang onto their homes (or have already lost them), and are paying increased gas and utility costs, and “EXTRA special” banking and credit fees will do without. They, too, will worry about whether the “lost revenue” will impact their ability to join the crowd currently collecting welfare and unemployment (if they’re not already there). Overall, I think Illinois would be better off giving away free liquor during the specified periods to keep the soon to be starving and homeless masses sedated…or retool a ballpark so that we can reinstate gladiator fights. - Anon - Tuesday, Mar 25, 08 @ 8:10 pm: And in between the gladitor fights, the last two groups (and their children who can’t afford college anymore) can go to work building pyramids for those who can afford them at a reduced tax rate. I don’t think they’ve figured out how to offshore THAT rising industry or profession yet, though we may have to fight off the illegals on our way to work. - Truthful James - Wednesday, Mar 26, 08 @ 8:04 am: Many municipalities rely on sales taxes to keep property taxes in check. This isn’t going to help them. - Truth - Wednesday, Mar 26, 08 @ 9:13 am: I know this, if the state gets the tax money they will spend it. Unfortunately, if they don’t get it, they might spend it anyway. - steve schnorf - Wednesday, Mar 26, 08 @ 3:39 pm: I can assure you that very few State employees (SERS) get state pensions of over 100K, much less 200K. Wn need to not be led by the ill-informed; things are bad enough now. Sorry, comments for this post are now closed.