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Study Suggests Sales Tax Holidays are Poor Tax Policy

July 29, 2019 - 9:30am

A study by The Tax Foundation suggests that sales tax holidays, in which states like Florida exempt certain products from sales tax collection during certain times of the year, have political benefits but are not good tax policies.

“The evidence, which includes a 2017 study by Federal Reserve researchers, shows that they simply shift the timing of purchases,” a statement by the Tax Foundation says. The Tax Foundation is a think tank that publishes research studies on tax policy.

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