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Pantagraph EditorialSunday, April 20, 2008 12:43 AM CDT
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'Back-to-school- tax holiday flunks basic math
By the Pantagraph Editorial Board
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Members of the Illinois Senate seemed to be thinking more about their own re-elections rather than the state's finances - or even the public's finances - when they approved a 10-day "back-to-school" tax holiday.

It's up to the Illinois House to reject this plan and demonstrate financial prudence and common sense.

Under the proposal, no state sales tax would be imposed on school supplies, computers, clothing or footwear purchased from Aug. 1 through Aug. 10.

The "holiday" would only apply to computers purchased for less than $3,000 and clothing or footwear with a selling price of $200 or less.

The bill passed 58-0 even though some of those voting for it, such as Sen. Christine Radogno, R-Lemont, said the tax holiday in August could result in higher taxes later.

Sen. Bill Brady, R-Bloomington, did not vote. However, Brady said he would have voted for the measure had he been present at the time of the vote. Brady thinks it will keep people from traveling to states with tax holidays, such as Missouri, or shopping via the Internet.

Ten days without a sales tax on those items could cost the state as much as $33 million.

How can a responsible lawmaker vote for such a holiday while the state is still trying to plug a budget hole estimated at $750 million?

Even though state Sen. Larry Bomke, R-Springfield, said he thinks other taxes will be generated to offset the lost sales tax revenue, that's difficult to believe.

For the most part, these are items that would have been purchased anyway, so it will not be generating additional sales.

Retailers are unlikely to add employees for the 10-day period that wouldn't have been added or given extra working hours for the back-to-school rush anyway.

In fact, by concentrating purchases in a 10-day period rather than spreading them out, it could have the opposite effect - resulting in reduced working hours for employees if shopping volume drops considerably after the "holiday" ends.

There is no doubt that many working families with children in school could benefit from the tax break as they buy new clothes, notebooks, pens and other supplies - including computers.

But a lot of other people without children in school will get a free ride they don't necessarily need on the backs of taxpayers - as will a lot of parents of school children who have little financial need.

When it comes to something like a sales tax, there is no easy way - and arguably no legal way - to distinguish between those who are in need and those who aren't, those who have school children and those who don't.

In fact, we pity the poor retailers having to reprogram their computers or have a list at every register to determine what constitutes "qualified merchandise" under the bill.

If this "feel good" legislation is approved, it's lawmakers who should go back to school - for a remedial course in math.

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