OT: Sales Tax Holiday

Tennessee's first annual "Sales Tax Holiday" started at midnight today and
runs through midnight Sunday. It's a nice idea since our sales tax is
9.75%. Unfortunately, nothing on the "approved list" is anything I need,

Victor Martinez...

Yikes! And I complain that our 8.25% sales tax is high. Then again, we
have insane property taxes... :(

and these days I'm only buying things I *need*.

Most clothing is tax exempt unless it's strictly for recreational sports

Victor Martinez...

Here the restriction is that no item over $100 is exempt. But you can
buy a $99 designer something or other and you won't pay tax.

(golf shoes, ski boots and the like are excluded). Most of what is tax
exempt are school supplies - notebooks, pens, tape, glue sticks. Well, I
don't need any clothes and I definitely don't need school supplies.

Victor Martinez...

School supplies, suprisingly enough, are *not* tax exempt.

Food is *not* tax exempt nor are prescriptions. Even people with kids need

Victor Martinez...

Food and Rx are always tax exempt over here.

Monique Y. Mudama...

Pretty sure that's true here, as well. Although there's a distinction
between grocery food and restaurant food. Restaurant food is
definitely taxed. Makes sense -- no one "needs" to eat in a
restaurant.

jmcquown...

Absolutely. And "groceries" (IMHO) shouldn't include soda pop, alcoholic
beverages or snack foods. Just my opinion since those things, while nice on
occasion, aren't essential to life.

Christina Websell...

Ah, I am going to disagree with you here. It is not up to you - or anyone
else - to decide what anyone chooses to eat or drink is appropriate or not.
You sound like the food police. I can hardly believe you said it!

jmcquown...

I'm not the food police by a long shot. I enjoy my beer but I wouldn't
expect it to be tax-free even though it would greatly benefit me! It's not
a necessity. Neither is Coca-Cola or Hostess snack cakes. If snack cakes
are a *must*, baking ingredients such as flour, sugar, etc. would be tax
free - bake your own cupcakes or cookies :) Better for you since they don't
have all those artificial ingredients, too.

Monique Y. Mudama...

I see your point, but it seems a fine line. Bought brownies should be
taxed, but made brownies shouldn't be? Corn bread, cupcakes, birthday
cake? Should cube steak be tax-free and filet mignon taxed?

jmcquown...

Items such as flour, sugar, baking powder, butter, oil... those ingredients
don't necessarily equate to "cupcakes". I consider those to be staple items
for basic cooking. I've never seen store-bought cornbread, do they really
do that in Colorado?! As for the meat, I'd say it shouldn't matter any more
than if you purchased boneless chicken breasts vs. bone-in (even though
bone-in are cheaper and technically you could bone them yourself). Taxes
are very confusing to say the least.

Monique Y. Mudama...

Err, now that you mention it, I've had corn bread in restaurants, but
I don't recall buying it for take-home anywhere.

I agree that taxes are confusing. I'd like to see a flat tax. I don't
even mind taxes so much -- social benefits have to come from somewhere,
and people in general seem to want the government to help without
contributing any money, so I understand trying to sneak it in here and
there -- except for this whole war thing. It disgusts me how much money
we're spending (forget about lives and effectiveness) that could be used
to improve the lives of our own citizens. Or people abroad. Whatever.
It could be used on things that aren't weapons and fighter vehicles.

William Hamblen...

Prescriptions are not subject to the Tenessee sales tax. Over
the counter remedies are.

jmcquown...

I'll check my receipts... I swear if I buy everything at the same check-out
at Walgreen's it's all totalled in and sales tax is included with my
prescriptions. Good to know it shouldn't be and that I have some recourse
if it shouldn't be.

food and prescriptions, maybe even more so than a lot of other people. Once
again the people with kids have an advantage over those who don't. Just my
opinion, folks.

Victor Martinez...

Well, I think it's making up for all the pain they have to suffer for
having chosen to procreate. ;-)

Monique Y. Mudama...

Key word "chosen." Although I'm not exactly sure what advantage we're
describing here?

jmcquown...

I was describing school supplies. I really think they should exempt
groceries and prescriptions on this tax-free weekend since that would
benefit *everyone*. I have no need to get school supplies tax-free but I

Chakolate...

But that would be much more expensive. Just think of the amount of tax
that wouldn't be collected. Making school supplies tax free for a
weekend is a grand gesture, but it doesn't cost the state much.

definitely have to eat. And I have a prescription I currently can't afford
to get filled and my doctor, who normally gives me samples, doesn't have
any.

Takayuki...

The thing about tax holidays are that they're used for economic
stimulus for retailers, not for benefiting consumers. When
legislators want to benefit consumers, they lower or eliminate sales
taxes on things on a more permanent basis.

Since necessities like food will be bought anyway whether they're
taxed or not, including them in tax holidays won't benefit stores
much. But if you have a tax holiday on things like electronics,
furniture, etc., then people may be encouraged to buy things that they
otherwise would not have bought.

It's not fair or anything, but that's generally the rationale. Plus
the usual political considerations.

sriddles...

I guess I don't see the advantage. It costs a fortune to get children
ready for school every year. I was just thinking while looking at sales
flyers that I'm glad I don't have to do that anymore.

jmcquown...

Yeah, the advantage is more for people with children. School supplies are
tax exempt this weekend. And the Memphis city schools enacted a strict
dress code a few years back (much like uniforms; boys in khaki pants and
blue polo-type shirts, can't remember the girls outfit). So this benefits
primarily people with children. I suppose if I needed clothes and could
afford to buy some I'd go out and get myself some jeans or shorts or
something. Otherwise, at this time it doesn't benefit me in the least :(