What's Worse Than Tax Holiday

I wrote not long ago about how ridiculous New Mexico's back to school tax holiday is because there is little rhyme or reason to the exemptions. Well, leave it to Santa Fe City Council to top that absurdity:

The City of Santa Fe, New Mexico, has a budget shortfall of $200,000 that it needs to fill. Every city, county and state faces this dilemma, and there are only two policy options: cut spending or raise taxes. To no one's surprise, the city council has chosen to raise taxes, but people should be surprised at the dreadful choice of tax the council has made. Instead of a tiny hike in a broad-based tax that most people in the city pay, it has chosen to violate every principle of sound fiscal policy by raising taxes on specific "unhealthy" products.

Yeah, that's brilliant.

Back to School Shopping

So, that back to school tax holiday starts today. And, you can download the list of items to be purchased tax free here. But, I think it's worth taking a moment to call out some of a couple of "school essentials" that are showing up:

• Corsets and corset laces
• Diapers (adult and baby, cloth or disposable)
• Fur clothing, coats and stoles
• Garters/garter belts
• Lingerie
• Nightgowns and night shirts
• Pajamas
• Religious clothing
• Tuxedos, purchased
• Bridal gowns and veils, sold

Now, I know what your thinking. That is a bizarre list of items for going back to school. Just what are they teaching in those schools these days? Well, you're thinking that unless you happen to work for the New Mexico Department of Taxation and Revenue:

The state Department of Taxation and Revenue takes a broader view.

"We don't know if someone is not going to use a wedding dress in a school production or a tuxedo during a school activity," Libby Gonzales, director of revenue processing division, said. "We can't judge that."

Gonzales said the list was drafted by a large group in her department

"Women's lingerie is clothing that people need to go to school," she said.

Gonzales also said you never know what people will need. For example, diapers for babies and adults are tax-free.

"The list goes on and on and on, but you have to draw the line somewhere," she said.

To be clear, taxation and revenue said the lingerie could be worn under school clothes.

And, I guess you need the "fur clothing, coats and stoles" for over school clothes. Now don't get me wrong. I'm all for tax holidays, but like I said yesterday, a pet peeve of mine is tax incentives for specific industries. What is good for goose is for the gander. If we're going to provide tax holiday, let's not let certain industries lobby their way in to take advantage and then pretend they have something to do with going back to school.