Retailers urge government to endorse sales tax holiday
November 16, 2001,
Washington — Retail ceos from some of the largest companies in the U.S. joined the National Retail Federation in asking Congress and President Bush to pass a nationwide sales tax holiday, positioning it as an economic stimulus that would save consumers $6.5 billion.
The legislation, which has already been introduced into the Senate and House, would allow participating states to stop collecting state and local sales tax for a 10-day period. Congress would reimburse the lost revenue. All big-ticket items would be covered by the holiday, including automobiles. However, taxes on alcoholic beverages and tobacco would not be suspended.
Among the 33 executives who signed the NRF letter were Gordon Segal, ceo, Crate & Barrel; John Dunham, president, May Department Stores Co.; George Heller, president and ceo, Hudson's Bay Co., Alan Lacy, chairman, president & ceo, Sears; Brad Martin, chairman and ceo, Saks Inc.; Bill Podany, chairman, president & ceo, ShopKo; Allen Questrom, chairman and ceo, J.C. Penney Co.; and Jim Zimmerman, chairman and ceo, Federated Department Stores.