For Immediate Release:

Wednesday, October 31, 2001

(WASHINGTON, D.C.) - Senators Patty Murray (D-Wash.) and Olympia Snowe (R-Maine) introduced legislation to kick off the holiday shopping season with 10 days of tax-free shopping, beginning the day after Thanksgiving. Under their plan, the federal government would reimburse states for uncollected sales tax revenues between November 23rd and December 2nd.

"The National sales tax holiday is exactly the type of immediate, fair, and responsible incentive that will help jump start the economy," Murray said. "It will benefit consumers immediately and will also benefit everyone in the retail chain, from assembly line workers and truck drivers to shelf-stockers and salespeople. We will be giving our families a break while helping to fuel the economy."

Retail industry analysts believe the 10-day sales tax break would cost the U.S. Treasury $6.5 billion. Unlike corporate tax breaks or reductions in marginal rates, every penny of this tax cut would go directly into the economy.

Currently, seven states plus the District of Columbia successfully hold sales tax holidays. Florida, Texas, Pennsylvania, South Carolina, Iowa, Connecticut, and Maryland all have tax free shopping days.

"The sales tax holiday will save you money on everything from cars and computers to Palm Pilots and Pokemon."

The legislation would require the 45 states with sales taxes to approve the federal offer of reimbursement prior to the beginning of the 10-day period.