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August 11, 2005
tax free is barely free
I was in Origins the other day looking at their luscious but expensive ginger sparkly lotion which I love but just can't justify the cost right now. Instead I picked up a small but still expensive bottle of conditioner and went to purchase it.
"This weekend is tax-free if you are looking to buy any gifts or other items," the clerk said.
"Ahh the five percent discount. Not worth worrying about," I said.
He looked at me like I had two heads. "No, it's a tax-free holiday."
I nodded, knowing that he was the one with two heads. "Yes, that would be a 5% discount, you see."
He didn't get it. He was seriously confused when I left. Jeesh.
I used to work for a sales and use tax software firm so I know loads more about sales and use taxes than normal people ought to know. And I know that tax free holiday (5% sales tax in MA) really is just a great gimmick for governments to get people to go out and buy to help give the economy a boost. The state will lose money to the tune of $14 million but retailers are expected to get a $300m jump ahead.
It's amazing how sucked in that people are by that five percent discount. Joe and I just happened to be looking for a rug last year during the MA tax holiday. We ended up at Jordan's furniture which was PACKED like it was Christmas. I couldn't believe all the sheep that had clustered there for their 5% discount, not realizing that if they held out a few weeks that the likelihood that the retailer would offer a bigger discount was probably pretty good. Instead the malls and the shopping centers are going to be jammed with people who can't do simple math and realize that really--they aren't getting much of a deal.
Now when I lived in Seattle and the city tax was something crazy like 9.6%, well a tax holiday on larger purchases would have been a bit more promising. 5% isn't enough of a reason for us to be herded around like the rest of the lugheads in MA. Give me the beach anyday. Can you say sand castle competition?
Posted by crystallyn at August 11, 2005 07:04 PM
Comments
Hmmm, we have 17.5% Value Added Tax on most goods here in the UK. I think if there were a tax free weekend over our way, the shops would be mobbed!
Posted by: Busyknitter at August 13, 2005 02:12 AM
Actually I got some good deals on certain wood furniture that NEVER goes on sale... and I are good at math! ;)
Posted by: Heidi at August 15, 2005 09:49 AM