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A neighbor of mine says that the USA government is considering dropping sales tax for the last couple of weeks of December to stimulate the economy.
I haven't heard anything of this........ is it true? I'm skeptical because sales tax is state driven, not federal.
That would save some $$ when buying a car, if true.
Post news links if possible.
 
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Re: No sales tax last two weeks of December??? (randy)

quote:[HR][/HR]A neighbor of mine says that the USA government is considering dropping sales tax for the last couple of weeks of December to stimulate the economy.[HR][/HR]​
Sales taxes are set by the individual states, not the Fed. Different states have different taxation rates, and those rates also differ for various kinds of products.
For example, Delaware has no sales tax on clothing and personal goods, while Maryland has no sales tax on food items. Right now, the District of Columbia is lifting sales tax on clothing purchases under $100.
However, before you run to Delaware to get that new GTi, realize that VW will charge you the sales tax for your home state, because that's where you'll be titling and tagging the car. Make sense?
 

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Re: No sales tax last two weeks of December??? (randy)

quote:[HR][/HR]A neighbor of mine says that the USA government is considering dropping sales tax for the last couple of weeks of December to stimulate the economy.
I haven't heard anything of this........ is it true? I'm skeptical because sales tax is state driven, not federal.
That would save some $$ when buying a car, if true.
Post news links if possible.[HR][/HR]​
It is true. Senators Olympia Snow (Republican from Maine) and Patty Murray (Democrat from Washington) introduced legislation into committee about this. They want the states (which, yes, control all sales tax in the United States) to stop collecting sales tax during December. In turn, the federal government will REIMBURSE the states for the lost revenue. The lost revenue will be in the tens of billions of dollars and don't worry, you'll still be paying for it through your federal income tax. It's not tax-free at all, it's simply a diversion of federal monies to the states through a federal program.
One of the ABSOLUTE TERRIBLE things about this proposal is that residents of states without sales tax (Alaska, Montana, Oregon - to name those that I know) will be forced to subsidize other states. That's CRAP!!!!
This bill would still need to be introduced in the House of Representatives (as it is a spending bill and all spending bills must be Constitutionally introduced in the House) before it goes through the Senate. That's the reason it is in committee right now because the Senate committee can work with House Reps to hammer it out then the House can vote on it and then the Senate can do the same. Of course Bush 2 must then sign it.
bgluckman - you're right about the car sales tax. It's called home rule. It stopped city folks (where taxes are usually higher) from going out into the suburbs to buy their cars at lower tax rates. Now it doesn't matter where you buy your car, it's where the car is registered. I purchased my car in Illinois (6.5% sales tax and $$$$$ to register/title) but it's registered in Alaska (No Sales Tax and $95 to register/title).
 

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Re: No sales tax last two weeks of December??? (fsdks)

Okay, I went to http://www.senate.gov and took a gander at Patty Murray's site. The National Tax Free Day is D.O.A. Here's the press release .
 
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