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Retailers seek help, call for national sales tax holidays

03:55 PM CST on Tuesday, December 23, 2008

By MARIA HALKIAS / The Dallas Morning News
mhalkias@dallasnews.com

Retailers are looking for a spot in the U.S. government’s relief line.

Saying “the situation is critical,” the National Retail Federation on Tuesday asked President-elect Barack Obama to support national sales tax holidays in March, July and October 2009.

The plan asks that the federal government reimburse to states the estimated $20 billion in lost state sales taxes.

The letter was signed by J.C. Penney chairman and chief executive Myron “Mike” Ullman who is serving as the industry trade group’s chairman, NRF vice chairmen Philip L. Francis, chairman and CEO of Petsmart Inc. and Stephen I Sadove, chairman and CEO of Saks, and NRF president and CEO Tracy Mullin.

“With consumer spending accounting for 70 percent of GDP, it is difficult to foresee an improvement in overall economic growth until the consumers regain their footing,” the letter says.

The industry is having one of its worst holiday seasons in decades. The U.S. Commerce Department said retail sales fell 1.8 percent in November the fifth straight month of declines.

The plan, which calls for the three tax holidays to last 10 days each, estimates each U.S. household would save $175.

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