Texans' Tax Breaks Trigger Spending
by Fernando Trevino on August 26, 2010 at 9:21 AM
It’s back-to-school time here in Texas, and we all know what that means: tax-free weekend! This past weekend thousands of Texans headed to malls, shopping centers, and outlets across this state in order to purchase tax-exempt items for school such as clothing and school supplies.
What’s crazy about tax-free weekend is how much we Texans go shopping. Some of us go all out even though in reality we are only saving $8.25 for every $100 we spend. I’m not trying to downplay the fact that we save some money, but I’m trying to show that even a small tax break for just one weekend can really stimulate an economy.
Tax-free weekend is proof to all those liberal nay-sayers that tax breaks WORK! If you don’t believe me, just try to find parking at the mall, and then if you do find parking, please let me know if you can find anything in the stores that is actually your size.
I myself am a victim of this weekend; I bought myself a new laptop. It isn’t even tax-exempt, but in my mind, I know that this is tax-free weekend, and I feel like I’m getting some sort of deal! That is how well tax breaks work, people will not only be purchasing essentials for back-to-school, but more expensive items because we are saving on everything else in our shopping carts.
It’s really simple; tax breaks work because everybody likes saving money when shopping, and everyone likes having some extra money in their pocket. Maybe President Obama should have postponed his earlier trip to Texas till tax-free weekend. He could’ve really learned a few things about economics! Not only do tax breaks very obviously get people to spend even when budgets are tight, but they make people happy. This weekend not only creates a positive mentality in Texans, but also gets consumers to purchase more than they would have without the benefits of no sales taxes for a weekend. I’m not saying that tax-free weekend makes the Texas economy what it is, but it definitely proves that people will spend more when the government will just get off our back . . . even if it’s just for a few days.
*This post was first published on Empower Texans.