State economist Corey Miller says although sales tax holidays have grown in popularity around the country, they don’t necessarily mean economic boons for businesses.
“It doesn't really change economic activity that much, and then the state ends up not collecting as much sales tax revenue as it would have,” he said. “But these are very politically popular because people, especially during difficult economic times, want to pay less in sales tax in any way they can.”
Miller says some households see the tax break as particularly beneficial.
“For low-income Mississippians who have to spend a higher portion of their income on what are considered necessities, like clothing, it can provide them with some relief from sales taxes, which are by definition a regressive form of taxation,” he said.
Mississippians from various backgrounds are poised to take advantage of the weekend. Ridgeland resident Nancy Kaminer is a former educator who has made purchases for her grandchildren during the sales tax holiday in the past.
“I was a teacher for 33 years and right now, with my grandkids getting ready to go back, it's helped so much,” she said. “Like buying the new school shoes and then all the school lists are out for parents to go pick up their school supplies.”
Kaminer says after paying the costs of summer childcare and other expenses, the costs to prepare for the new school year can be daunting.
“My daughter-in-law just said my grandson, who's going to be 12, he needs all new uniforms this year,” she said. “He grew out of all those other uniforms, so it really helps.”
