In other action during yesterday’s “special session,” Iowa legislators set the rules in motion if Congress decides to declare a National Sales Tax Holiday in late November or December. The U-S Senate’s considering a 10-day-long period in which no state would charge sales taxes on “personal property.” State Representative James Van Fossen, a republican from Davenport, estimates Iowans would save up to 60-million dollars if it happens. He says people are holding back on spending and he says the tax holiday would stimulate the economy.The sales tax would not apply to clothing, shoes, and even big-ticket items like refrigerators, boats, even cars. The feds are promising to pay the states for the lost sales tax money. Van Fossen says that means Iowa would get a roughly 60-million dollar check from the federal government so there wouldn’t be a new hole in the state budget.
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