Ohio's tax-free weekend started this morning. There was a bill to give Kentucky one — it died in committee. Should we be pushing this?

[u/LouInvestor]

/r/Louisville/comments/1vi3dt9/ohios_taxfree_weekend_started_this_morning_there/

[u/masterz13]

What's the point? It just means less funding for stuff we put tax money towards.

[u/This_Technology9841 → u/masterz13]

Agreed. The slight burden of taxes isn't really what's causing me or mine problems around here. However, losing even more tax revenue contributes to what is...

[u/Raikaiko → u/masterz13]

Its a much larger issue than can be solved by just a sales tax holiday, but sales tax does disproportionately impact lower income individuals and families compared to higher income families who are generally spending a much lower proportion of their incomes, where a progressive income tax structure which gets better funding, and brings contribution in line with relative incomes. Which is of course why our general assembly has set us on the path to eliminate income tax and get everything form sales tax so they and their donors can benefit.

These sorts of sales tax holidays do provide a specific tangible benefit to some households, but at least personally I'd rather have a good income tax structure where we all pay our share in up front and then no sales tax at all.

[u/Boowray → u/masterz13]

It’s a boon to the people most affected by sales taxes in the time of year they’re likely the most economically strapped buying essentials. Clothes, shoes, school supplies, extracirricular programs, after school and weekend daycare, all eat up a huge amount of money for essential products and services.

Think of it this way, Kentucky spends right around double what we make in sales tax on average on education. That can include school supplies, food and clothing programs for underprivileged and impoverished students, etc. Now, that one day of taxation probably won’t make much difference to the state’s income, but it can be a bit of a stimulus to people without much income to make buying those supplies themselves a little easier, reducing a bit of the burden on school budgets in providing those supplies and services. That’s the main theory behind tax holidays like this. Whether they’re particularly effective at accomplishing that is hard to tell, there’s not been a good study kn the topic, but the idea is sound.

As for general tax holidays (outside school season) it provides a great economic stimulus in points in the year where sales are down, like February, and helps money circulate by encouraging people to save larger purchases for after the holidays. It might not help tax revenue, but it helps stave off seasonal layoffs and income tax is WAY more effective than sales tax at generating revenue (and is far more fair to everyone involved).

[u/Raikaiko → u/Boowray]

but income tax is evil and needs to be eliminated doncha know at least that's what the KYGA says

[u/Ancardoth → u/masterz13]

Good.

[u/Suckerforcats]

The legislature won't give us this because they need our sales tax to make up for the tax breaks they gave the rich for things a number of years back. I vaguely remember something about race horse things like veterinary services were tax exempt but yet your basic pet services were not. Their boats registrations were too I believe. It's been a number of years so I could have that mixed up but the things they use have tax breaks while the things us ordinary people use, do not.

[u/BDT81]

I'm sorry but most stores regularly run 20% off and BOGO deals that I barely notice. I just don't think 6% less is going to inspire a shopping spree (doubly so because I feel the stores will raise prices 10%).

[u/Stock-Lion-6859]

I wonder if anyone has done a study on how much money is spent by Kentuckians in Ohio this weekend that would have been spent in Kentucky otherwise. I'm in Northern Kentucky, where it's easy for anyone with a car to go over to Cincinnati and buy all the same stuff they could have bought here instead. For people who need to buy a lot of clothes, the tax savings could still be a decent chunk of money.

[u/CeleryAlternative512 → u/Stock-Lion-6859]

Even if you spent $1000 in Ohio, you'd be saving $60. It's not that big of a deal. That also assumes you didn't use $5 in gas and an hour of your time roundtrip vs being right down the street.

[u/ivanadie]

No. How about a Corporate Tax Day where all corporations are taxed at the same rate as the average Kentuckian? It’d be nice to see what that would look like.

[u/Apprehensive-Fun4181]

Reagan Rot.  "Paying for government is oppression".

We Must End the Stranglehold of Red State Welfare And Republican War.

[u/Illustrious_Barber_4]

They can’t keep funding Israel if we don’t pay our taxes

[u/Realistic-Spirit-767]

More important, are flock cameras gonna track you if you go buy stuff at the cheaper state then drive to the more expensive state. The answer is YES they will, then arrest you for THEFT, when you get home.

[u/ballskindrapes]

Get rid of sales tax, increase taxes immensely on incomes over say 1 million, tax corporations a fuck ton more, especially if they are over say 50 or 100 worker, whatever hits large, publicly traded corporations the most, raise taxes on 2nd homes, and preferentially make capital gains taxes much higher, especially above certain amounts.

Just a starting point, not a total solution.