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Tax Free Weekend

P

patmort02

macrumors member
Original poster
Mar 2, 2006
75
0
So it's tax-free weekend in Massachusetts this sunday and saturday. I just finished up an internship so I have more cash than I know what to do with just sitting in my bank account. I know I shouldn't buy a new macbook pro with the updates coming out relatively soon and the graphics card problems, but I don't know if I'll be able to resist the temptation.


Anyone else in the same boat?
 
In the UK we have nothing like this and I'm wondering, what is the advantage to the Government of having a "tax free weekend"?
 
I treat tax-free weekend like Black Friday, I avoid it like the plague.
I shop tax free 365 days as I have access to the military base. No, absolutely no need, to save 8-10 cents on the dollar.
 
neiltc13 said:
In the UK we have nothing like this and I'm wondering, what is the advantage to the Government of having a "tax free weekend"?
Click to expand...

It is referring to the sales tax, like your VAT, except ours is not included in the purchase price. It's up to the states to decide how much they want their sales tax to be (or if they want one at all). It usually ranges from 5-10%. Some states choose to hold a tax free weekend, so for example in Maryland where tax is 6%, a Macbook Pro would cost $2120 with tax, on a tax free weekend it would only be $2000.

(of course maryland with our cheap governor who just raised the sales tax doesn't have a tax free holiday...:rolleyes:)
 
Yeah, I understand how sales tax in the USA works, but why would the Government allow a period where there is none? What do they have to gain from it?
 
scotty96LSC said:
I treat tax-free weekend like Black Friday, I avoid it like the plague.
I shop tax free 365 days as I have access to the military base. No, absolutely no need, to save 8-10 cents on the dollar.
Click to expand...

well i'd love a holiday like that here. highest sales tax in the country if i'm not mistaken, sitting at 10.25% right now and going up again in november.
 
PlaceofDis said:
well i'd love a holiday like that here. highest sales tax in the country if i'm not mistaken, sitting at 10.25% right now and going up again in november.
Click to expand...

Here in the United Kingdom (the 52nd state) we pay 17.5%.
 
The only real reason for it is to boost sales. Nothing really more than that, and some companies are offering a sale on top of the no-sales tax. Some stores (including the Apple Store) are extending their hours for this weekend, and it is mainly a reason to boost sales for stores. But I believe that the sales tax does apply to all items $2500 and over, so you can't get away with buying something big like a car without having to pay tax.

And for what it is worth, the sales tax here in MA is 5%.
 
Two reasons for tax free weekends. As others have mentioned tax free weekends stimulate economic spending and in our current economic slump, people aren't spending much nowadays. Thus, the states create incentive for their residents to shop.

Another reason, in the of about five or six years ago in PA...is to make certain items tax free...such as computers. The state made a tax free weekend for computers to push families to purchase home computers. Apparently, our state had a low rate of computers per household, and felt we needed to catch up technologically. Which makes sense considering many government services nowadays are available electronically, along side school projects, etc.
 
patmort02 said:
So it's tax-free weekend in Massachusetts this sunday and saturday. I just finished up an internship so I have more cash than I know what to do with just sitting in my bank account. I know I shouldn't buy a new macbook pro with the updates coming out relatively soon and the graphics card problems, but I don't know if I'll be able to resist the temptation.


Anyone else in the same boat?
Click to expand...

To get back to the original question. You'll face the same dilemma next year when they offer another tax free day and Mac Book Pros are getting ready to be updated. I personally would recommend doing it the amazon.com route unless you need something custom.
 
I live in Massachusetts as well, if you want to save some cash wait until the new MBs come out and drive North to New Hampshire. Or if the current model is enough for you purchase it now. Your call buddy.
 
Off topic, but... I've lived in MA for almost 3 years and I never knew there was no sales tax in NH. I live north of Boston, so it would take me about 30 mins to get to the mall in Salem. nice!
 
Heh, here in TN the tax free thing for computers only goes up to $1500, so that would eliminate any respectable model you'd want. And being that sales tax here is around 10% it kinda sucks, but at least we don't have a state income tax ;)
 
Sky Blue said:
Off topic, but... I've lived in MA for almost 3 years and I never knew there was no sales tax in NH. I live north of Boston, so it would take me about 30 mins to get to the mall in Salem. nice!
Click to expand...
Are you meaning to tell me that you have never read the "You know you are from Massachusetts when..." points:eek:

Here is a link, see number 94.
 
tax free question

neiltc13 said:
Yeah, I understand how sales tax in the USA works, but why would the Government allow a period where there is none? What do they have to gain from it?
Click to expand...

the belief is that is helps to spur the economy. so people buy things and retailers and manufactuers benefit.... so does the US.
 
neiltc13 said:
Yeah, I understand how sales tax in the USA works, but why would the Government allow a period where there is none? What do they have to gain from it?
Click to expand...
It just stimulates spending and helps people think the government is all greedy bastards :D.

Basically these tax free days get put into law by politicians looking to get re-elected.
 
neiltc13 said:
Yeah, I understand how sales tax in the USA works, but why would the Government allow a period where there is none? What do they have to gain from it?
Click to expand...

Like many others have said, it stimulates spending. I believe that it's also a part of trickle-down economics, or Reaganomics (which I am heartily against). Any economists out there, feel free to correct me.
 
We are a capitalistic society. Like others have said, tax free weekends encourages spending, like the way the Federal Reserve lower and raise interest rates, to again stimulate spending in all sectors of economy.

Tax free weekends here in the States are usually advertised like mad in store ads, and is right before school starts.
 
scotty96LSC said:
I treat tax-free weekend like Black Friday, I avoid it like the plague.
I shop tax free 365 days as I have access to the military base. No, absolutely no need, to save 8-10 cents on the dollar.
Click to expand...

When you are spending up to 2,000 dollars on a laptop, it adds up to roughly 200 dollars in tax. That is a chunk of money that I would rather not have divided up.

I have 100 dollars tax on my MacBook, iPod Touch, and printer when I bought them today. I was mad that I had to spend that much money.

In germany, you don't pay tax, because it is equaled into the products total price. About 35% of what you pay for something in Germany goes to support the mass tansit.

I was born there, but moved to the U.S. when I was 3, and I am an American Citizen. I was mad when I was at the airport with my receipts trying to save a couple hundred dollars from getting my tax money back, but I am still a German citizen, and they wouldn't D:!

Arrrgh. Das ist sheiß, ja?

:confused:
 
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