Since we’re in Texas, we save all year (except, of course, for thrift store and closeout sales), then buy everything on the tax-free weekend.

Last year, we probably saved ~$40 or better. I picked up suit jackets and pants, which were discounted to meet the price range.

This year, since we’re buying for a kiddo and an a second on the way, we’ll save even more.

Gee, Texas will pay us money to not buy anything until this weekend, huh? Okay, fine by me!

For example, those with spare cash or available credit can stock up on taxable items during a sales tax holiday, and thus obtain these goods free of sales tax. Those without either cash or credit cannot take advantage, and thus must pay the full sales tax on taxable items they buy.

Or maybe it’s not a big deal at all. From a Boston Globe story 7-23-2005:

–Tax-free holidays may be good for retailers, but they’re ”neutral at best” for consumers, said David Brunori, contributing editor to State Tax Notes, a trade publication. If not for the tax holiday, merchants would likely have to offer discounts to entice crowds into the stores, but if a tax holiday is stimulating demand, merchants can hold prices steady or even raise them a bit, he said.

”It’s a gimmick,” Brunori said of the tax holiday.–

Google “tax holiday” and “Brunori” for more.