HIT FROM ALL SIDES: States expand sales-tax holidays as Americans feel price increases
Many U.S. consumers have largely shrugged off rising prices and maintained their levels of spending, according to the Commerce Department. But there are indications that consumers with lower incomes have been opting to put off some purchases or are switching brands to save money, according to market-research firms.
Michelle Foszcz said rising prices contributed to her decision to spend around $80 on qualifying items for her children during Illinois's back-to-school sales-tax holiday."I remember being like, 'Oh, my God, this was only $9 last year, and this year it's $19.99,' " said Mrs. Foszcz, who lives in Hanover Park, Ill.
"The low-income taxpayer doesn't have the luxury to time their purchases to shop during the holiday," Ms. Dadayan said. "It will be much more useful to provide direct aid to low-income taxpayers rather than to provide holidays."Janelle Fritts, policy analyst with the conservative-leaning Tax Foundation, said tax holidays aren't well targeted to aid people who need the most help.