The National Retail Federation has asked President-elect Obama to declare three tax-free shopping holidays next year.

The situation is critical,” the National Retail Federation (NRF) wrote in a letter to Obama. “In October, consumer confidence was at its lowest level in the 41 years. We urge you to act quickly on legislation to help stimulate consumer spending

An economist told CNNMoney that tax-free holidays don’t always have the desired effect, because consumers tend to stop shopping in the month leading up to the event: “”From a policy standpoint, perhaps the most effective way to deal with the sales tax issue is to lower the tax rate rather than eliminate it altogether.”

“Retailers want their bailout, too” [CNNMoney]
(Photo: Getty)

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