It's also a gift so popular, critics complain, that the true cost to taxpayers has gone unnoticed. The sales tax holiday and a reduction in the intangibles tax levied on some investments are the two major tax cuts proposed by Gov. Jeb Bush this year. During a period in August for the past two years, Florida families have bought clothing shortly before school starts and avoided paying sales taxes.
Retailers get a boost in business.
Politicians can crow about giving a tax cut to working families. And a growing number of economists say consumers can actually end up paying more during the holiday if stores jack up their prices. They don't work,'' said David Brunori, a contributing editor to State Tax Notes. He said the basic law of supply and demand drives retailers to raise prices an average of 10 percent, because more shoppers will show up anticipating a sales tax reprieve. Retailers will raise the price as much as they can.'' John Rogers, a lobbyist for the Florida Retail Federation, sees it differently.