Tax Holiday Cost

Illinois Department of Revenue estimates that the long sale tax holiday will cost the state $40 to $60 million. The state is currently $13 billion in the hole. Ergo, Illinois will forgo paying off about 2.5% of its debt so people can pay 5% less for school supplies. Research is inconclusive as to how much or little the holiday will affect state revenues. About a dozen states in all have tax holidays starting this weekend, including Missouri. Georgia and Washington D.C. had them in past years, but due to the affect on state incomes, decided to cancel them this year.