Editorial: Quinn’s plan offers extravagant holiday Posted on March 30th
One of the reasons Gov. Pat Quinn wants to boost the Illinois income tax is that the state is not bringing in enough money. His various recommendations would capture more than $4 billion in extra funds next year, helping to close a big fiscal deficit. Given the state’s alleged shortage of cash, it’s hard to understand why the governor would also cheerfully give up revenue it is already getting. But that’s exactly what Quinn wants to do.
His idea is a back-to-school sales tax holiday every August—exempting clothing and shoes that cost less than $100 per item, as well as school supplies. It has been tried in several other states, including Texas and Massachusetts, and parents and retailers both like it.
Quinn thinks forgoing sales taxes makes particular sense during the current recession, since it would not only “make life easier for struggling Illinois families,” it would “help spur the state’s economy.”
Although parents will definitely save some cash, it’s not clear the state’s economy will gain much. Most of the sales, after all, would take place sooner or later anyway, since kids outgrow clothes and require new notebooks. The tax break will just move a lot of these purchases into one 10-day period.
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