Why You NEED To Shop on Black Friday

Fellow shoppers unite – our time is here! Amongst deals and door busters, lines and lattes, holiday shopping begins in less than 48 hours. While we could spend time discussing the best deals, and who is going when and where, let’s expand on this – there is a NEED for you to exercise your buying power over the next 30 days, and the Government is counting on you to do your part. 

Yes, you read that right – there is a genuine NEED for you to "shop till you drop" on Black Friday and during the 2015 Holiday Season!

So here’s how it works and how you can spin this to your spouse or significant other that believes that all the hoopla around Black Friday is just that.

In a 2013, USA Today article, Ron Alt, Senior Research Analyst with the Federation of Tax Administrators estimated that about 10% of a state’s annual sales tax collections are collected and remitted during the 4^th Quarter each year as consumers move into a much more generous mind set and “buy” more, thus inflating the sales tax liabilities that are collected and remitted by local and national retailers during the December and January filing periods. Alt indicated that the increase is significant for most state and local governments reflecting a 10% - 13% increase in sales tax remittances month over month and has state and local government officials anticipating year-end sales and use tax filings. Not a shopper? Sales tax collection peaks are not just centered around tangible goods, there are also restaurant sales, hotel sales, entertainment, and general travel expenditures which all contribute to the increase that all local and state governments benefit from.

 

The National Retail Foundation, also quoted in the 2013 USA Today article, indicated that holiday sales can represent as much as 20% - 40% of annual sales for retailers, with the initial ramp up beginning on Black Friday each year as shoppers and gift-givers work towards catching the best deal. In addition, with the enacting of the Marketplace Fairness Act, online retailers are required to collect and remit tax for online transactions bringing in an estimated additional $23 Billion per year in sales tax remittances….$23 BILLION DOLLARS IN SALES TAX!

So make your list and check it twice, kiss the kids and head on out on your Black Friday shopping extravaganza! Tell the naysayers in your family that You NEED to shop on Friday and through the weekend in the stores and online to help your state and local governments provide your legislators with increased budgets to work with during the upcoming legislative sessions…. which in turn helps you and your community!