Vermont sales tax holiday a big hit
The Maine Heritage Policy Center has argued repeatedly that high tax burdens depress the economy by taking money out of the pockets of taxpayers. We have shown how Maine’s high sales taxes lead Maine people to shop in New Hampshire, costing the Maine economy, and, ironically, Maine government, untold millions.
Now comes word from Vermont of the effect of a sale tax holiday there. As this Boston Globe article describes it, the recent two-day tax holiday was a huge hit. Businesses described themselves as “swamped” and were forced to hire additional help to keep up with consumer demand.
The best line from the article? “”We didn’t have to do any advertising. The government did it all,” said one of the business owners. What did government do in this case? It cut taxes and got out of the way.
There are those that would love to think that high taxes have no effect on the economy of a state. For years, we’ve pointed to the stellar economic growth of low-tax New Hampshire as evidence that this in not true. Who would have thought we could point to Vermont as well?
When are Maine policymakers going to get it?