President Obama’s Department of Homeland Security (DHS) explained to immigration officials that American businesses make more money when government takes less in taxes.
The economics lesson came in anticipation of the sales tax holiday in Texas this weekend, which DHS expects will cross border traffic to “be heavier than normal this weekend” as large number of Mexicans go shopping in Texas in order to take advantage of the lower prices.
“This is a historically busy period at area ports as many residents cross the border to shop during the tax savings event,” said David Higgerson, U.S. Customs and Border Protection acting Director of Field Operations in El Paso yesterday. “We encourage all border crossers to plan accordingly and to build extra time into their cross border trips this weekend.”
Shoppers in Texas will save about $8 off of every $100 they spend due to the tax relief. “Since 1999 shoppers have taken advantage of the sales tax holiday and saved money in their budgets,” Texas Comptroller Susan Combs said in a statement. “Families gearing up for the new school year do not have to worry about paying sales tax for many back-to-school items from clothing and shoes to school supplies this weekend.”
According to KFYO News Talk, “Texas shoppers have saved $626.9 million since the first tax-free holiday in 1999.”
The holiday attracts enough customers, apparently, that businesses can cut prices in order to bring in even more business. “Texas retailers are providing great bargains on popular items throughout their stores, providing even greater saving opportunities for Texas families this weekend,” said Ronnie Volkening, president and CEO of the Texas Retailers Association.
This demonstration of how lower taxes helps an economy would seem to suggest that higher taxes would cause businesses to have fewer customers.
No wonder President Obama said “You don’t raise taxes in a recession” back in 2009.