Economics - Tax Holiday

Economics - Tax Holiday - With such awareness seemly the...

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Airton da Silva Eco-215-02 Macroeconomics Mr. Lawless 9/7/06 As an economist, the sales tax holiday which occurred on the 14 th of August did not have any benefits towards the economy of Massachusetts. Since the economy of Massachusetts is based mostly on income tax, it seems unlikely that there was much benefit made on the 14 th of August. On that day, a few thresholds (as verified and embedded in the enacted statute TIR 04-14: The Massachusetts Sales Tax Holiday) were secured which limited purchases to a certain amount. More over, these threshold did not just impede one from buying an over-priced item, but it encouraged the buyer to maintain his or her spending below the limit.
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Unformatted text preview: With such awareness, seemly the economy might’ve suffered a slight loss that day since the attention of buyers were not focused on any item whose price was overruled by the threshold, but rather instead, their attention were on the items that did no exceed any of the thresholds supported by the act. As for the retailers, they were also able to benefit from the holiday. Business owners profited more from 14 th of August holiday then any other usual day. Not only did they not have to pay for taxes, they ended up getting more business that day because of the holiday....
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