TALLAHASSEE, Fla. (AP) - The Florida Retail Federation is defending the state's sales tax "holiday" on back-to-school purchases against criticism from a conservative think tank.
Retail Federation CEO Rick McAllister on Tuesday disputed The Tax Foundation's arguments.
The Washington, D.C.-based foundation says such temporary tax breaks do little stimulate the economy or benefit consumers.
Florida is lifting the state's 6 percent sales tax as well as local taxes on certain clothing and school supplies for three days - Aug. 12 through 14.
The foundation contends consumers don't spend more - they just change the timing of their purchases.
McAllister cited a study done for his group disputing that argument.
The foundation also contends retailers sometimes raise prices to at least partly offset tax savings.
McAllister said that's "nonsensical" because retailers compete with each other.
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