Tax holiday

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Tax holiday

A reduced tax rate that a government provides as an inducement to foreign direct investment.

Tax Holiday

A temporary suspension of a tax, especially a sales tax. Jurisdictions declare tax holidays at certain times of the year on the theory that doing so will stimulate consumer spending and thereby induce economic growth. Some U.S. states routinely declare tax holidays before school begins each year, for example. Critics of tax holidays maintain that they deprive the jurisdictions of revenue and that their effect on growth is overstated.
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Mississippi and South Carolina also have similar tax holidays for guns, according to the lobbying arm of the National Rifle Association, which supports the Texas proposal.
And if you're buying online, the sales tax holidays apply only if the address where the item will be shipped is located in a state offering the sales tax break, Smith said.
The sources pointed out that unfortunately, owners of various AJK-based industrial units changed the names of their units with the same machinery at the same premises, after the completion of the stipulated five-year tax holidays period for tax concession.
Not only do tax holidays benefit residents of the state who can enjoy a substantial reduction in actual cost for big ticket purchases they might not have otherwise made, these holidays also serve to bring in consumers from outside Massachusetts.
Two more sales tax holidays followed: in 2008 a two-day break for hurricane preparedness items priced less than $1,500, and in 2009 a three-day break for firearms, ammo and hunting supplies.
Sales tax holidays have broad political support, with backers arguing that holidays are a highly visible form of tax cut that provide benefits to low-income consumers.
A repeat of a corporate tax holiday that found little success in stimulating the economy in 2005 is still a long-shot to jump-start a stagnant U.
Existing tax holidays will continue for a limited time, while new incentives, such as a lower rate of 15 per cent, have been introduced for green businesses and high-tech companies.
The budgetary consequences of the remaining potential tax holidays would vary substantially.
Tax holidays and financial incentives do work, although one study in the U.
But other than tax rebates, payroll tax holidays or massive increases in temporary spending--none of which is on the table--there's little the federal government can do to stimulate the economy immediately.
Eight other states have similar sales tax holidays.