Stein calls for the revival of tax-free holiday in N.C.
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North Carolina's Democratic nominee for governor, Attorney General Josh Stein, wants to bring back a tax-free holiday.
Why it matters: It's been 11 years since the state had a tax-free weekend, and suggesting North Carolina rejoin the 19 other states that have at least one, could score Stein some major political points as inflation remains a top issue for voters.
Driving the news: In a series of press conferences and events held across the state this week, Stein is highlighting a plan to "cut costs for parents and teachers."
- That plan includes calling for the reinstatement of an August sales tax holiday, stipends for teachers buying school supplies for their classrooms and an investment in free school meals for students.
How it works: Tax-free holidays give families the ability to buy certain eligible items — like school supplies, clothes and computers — without added sales tax, which ranges from 6.75% to 7.5% depending on where you are in the state, the Charlotte Observer reports.
- The holiday cost the state more than $13 million, the Times-News reported in 2013.
- Both Virginia and South Carolina currently have tax-free weekends that North Carolinians travel to, Stein said, per the Observer.
Flashback: The Republican-led legislature and then-Gov. Pat McCrory passed legislation in 2013 doing away with tax-free weekends as part of a package that included 48 tax cuts that Republicans said would help families see tax savings all year, rather than in just one weekend, the News & Observer reported in 2016.
What they're saying: "Too many families are struggling to pay their bills each month," Stein campaign spokesperson Kate Frauenfelder said in a statement to Axios.
- "As Governor, Josh will look at every tool in the toolbox to get more good-paying jobs here and to lower costs for North Carolina families, including cutting taxes."
Reality check: The governor doesn't have the power to reinstate a tax-free weekend, only to call the legislature to do so.
The other side: While tax-free holidays are politically popular, they have little to economic benefit, the nonprofit Tax Foundation wrote last month.
- A spokesperson for Republican Lt. Gov. Mark Robinson, Stein's opponent in the race for governor, called the proposal a "cheap election-year stunt" in a statement to the Observer.
- "Instead of desperate election year gimmicks that fail to provide meaningful tax relief, the legislature is focused on long-term, permanent tax cuts that allow all North Carolinians to keep more of their hard-earned money," Senate leader Phil Berger said in a statement to Axios.
The bottom line: Americans have been feeling the pinch of inflation in their daily purchases — from groceries to home repairs — for the last few years post-pandemic, and a tax-free holidays remain politically popular, per the Tax Foundation, regardless of whether or not they're economically beneficial.