State & Local Tax Blog

Halt the obscene sales tax giveways

This is not my headline; it’s the headline in a California newspaper and it shows the degree of dislike people have for certain tax incentives. Getting cities to rebate some of the sales tax collected by retailers continues to be controversial. As more of the general public hears about these types of incentives, the more controversial it will become. At some point, you can probably expect a backlash from consumers and the tax rebates will be insignificant compared to the loss of business. This editorial is evidence of the bad feelings this type of incentive creates.

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