Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
The tax holiday was more likely to benefit families that had "the disposable income to buy an $80 sweater for their teen"(De La Torre 2008). To extend this argument, the effect upon equilibrium price and quantity demanded by such non-price sensitive consumers was negligible, resulting in no net benefit to the state's retailers or middle-class consumers. The sales tax holiday on clothing was as equally regressive as a sales tax on clothing -- someone buying a $500 pair of Prada boots gets the same exemption as a poor woman buying her child a much-needed new school uniform, during the holiday period, in contrast to the periods of time when the sales tax was imposed on goods over $75.
But why places a sales tax on clothing, any form of clothing at all? Making the exemption on clothing on items only below a certain amount seems arbitrary. Perhaps shoes in excess of $110 in New York City or $75 in the state of Connectivity seem like luxuries but the same may not be true of a new winter coat or sturdy pair of books, or even basic athletic equipment not provided by the school for a child, such as running shoes. A parent of modest means might still find him or herself unduly penalized. Imposing price ceilings upon certain goods rather than a uniform price ceiling on the sales tax, such as children's school uniforms would likewise not cover all of...
Thus, despite the revenue loss to the state, in the interest of fairness, the elimination of sales tax on clothing would be beneficial, and might help consumers and retailers alike, as more price-sensitive consumers might be more willing to buy slightly more costly, but high-quality goods in excess of $110 in New York State and $75 in the state of Connecticut.
Works Cited
Chamberlain, Andrew. (31 Dec 2006)." New York Democrats call for permanent sales tax holiday." Tax Policy Blog: Official weblog of the Tax Foundation. Retrieved 15 Sept 2008. http://www.taxfoundation.org/blog/show/1325.html
De La Torre, Vanessa. (2008). "State's tax holiday on clothes, shoes begins Sunday."
The Hartford Courant. Retrieved 15 Sept 2008. http://www.courant.com/news/local/hc-cttaxfree0816.artaug16,0,2152521.story?track=rss
Exemptions from sales and use taxes." (2008). The State of Connecticut:
Department of Revenue. Retrieved 15 Sept 2008. http://www.ct.gov/drs/cwp/view.asp?a=1477&q=269920
Sales and use taxes." (2008). NYC Finance. Retrieved 15 Sept 2008. http://www.nyc.gov/html/dof/html/business/business_tax_nys_sales.shtml
Sales tax on clothing
Works Cited
Chamberlain, Andrew. (31 Dec 2006)." New York Democrats call for permanent sales tax holiday." Tax Policy Blog: Official weblog of the Tax Foundation. Retrieved 15 Sept 2008. http://www.taxfoundation.org/blog/show/1325.html
De La Torre, Vanessa. (2008). "State's tax holiday on clothes, shoes begins Sunday."
The Hartford Courant. Retrieved 15 Sept 2008. http://www.courant.com/news/local/hc-cttaxfree0816.artaug16,0,2152521.story?track=rss
Exemptions from sales and use taxes." (2008). The State of Connecticut:
Department of Revenue. Retrieved 15 Sept 2008. http://www.ct.gov/drs/cwp/view.asp?a=1477&q=269920
Sales and use taxes." (2008). NYC Finance. Retrieved 15 Sept 2008. http://www.nyc.gov/html/dof/html/business/business_tax_nys_sales.shtml
Thus, the per capita tax revenue is presented in Table 5. Table 5: Ratio: Per Capital Tax Revenue ($Million) New York Activities 2010 2009 Tax Revenue $58,039 $55,804 Total Population 19,378,102 19,378,102 Ratio: Per Capital Tax Revenue $2,995: 1 $2,880: 1 Pennsylvania Tax Revenue $28,300 $27,600 Total Population 12,702,379 12,702,379 Ratio: Per Capital Tax Revenue $2,228:1 $2,173:1 The findings from table 5 reveal that both states record increase in per capital tax revenue at the end of the fiscal years 2009 to 2010. In the New York, the government realizes ratio of $2,880 per
Taxation in the United States The taxation system of the United States of America is flawed in many ways; meanwhile there are some benefits of this system as well. The current taxation system of the United States needs to be analyzed to point out the flaws in the system. The main purpose of this paper is to discuss the current components of this system with respect to the flaws and good
Taxes An evaluation of two types of taxes: Sales vs. income Sales taxes are invariably regressive taxes. Poorer people use a larger percentage of their taxes for consumption-related expenses, so they pay proportionately more of their income in sales taxes. For the wealthy, more of their spending is concentrated in savings and investments, since they can save a larger proportion of their income and still meet basic expenses. Of course, given that
Taxation Advice for a Multinational Corporation The impact of currency values on commercial operations is a familiar topic for the international accountant. Much of the attraction of currency markets stems from its synthesis of all aspects of the world economy distilled into a single, digestible value. The significance of relative currency values rests primarily on their relationship to world markets and their interaction with international trade, investment, and monetary practices. A
consumption tax alternatives: retail sales tax, flat tax and personal consumption tax. Justifications for tax reform range from the need to simplify the current system to raising revenues to modifying social policy. In the face of growing demands by politicians and taxpayers alike, the topic of tax reform has produced alternate federal income tax proposals. This essay compares income tax to consumption tax, and also reviews the retail sales
Flat Tax over the Current Tax Policy The focus of this paper is to demonstrate effectiveness of flat tax over the current tax rate. Presently, the U.S. government employs progressively tax law as the current tax policy. Under the current tax policy, the government increases taxes with increase in income. Analysis of the current tax policy reveals that the tax system is very complicated to understand because corporate organizations face multiple