Retailers have suffered their worst Christmas sales in years and many are forced to declare bankruptcy. Some are asking the states to declare sales tax holidays so they can bring back customers and stay in business. But billions of those sales taxes help support the state. The states claim they cannot provide proper services without the help of sales taxes. The U.S. government is now being asked to reimburse the states if sales taxes are temporarily lifted. A large part of the trillion dollar stimulus package can be used for that purpose. Once again the public sector is coming to the aid of a private sector that is in trouble. It is like the tail wagging the dog or the cart carrying the mule. The dog and mule must be restored to their proper position if sanity can be maintained.
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