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Retail group proposes sales tax holidayBut as the country moves toward the end of a dismal Christmas shopping season with equally poor predictions for spending in January 2009, retailers are desperate for measures that will get consumers spending again. The National Retail Federation has written a letter to President-elect Barack Obama asking him to include three "sales tax holidays" in his economic stimulus plan for the coming year. According to the NRF, consumers could save a total of almost $20 billion from the plan - which works out to around $175 per household. These tax-free shopping periods would be held in March, July and October, under the NRF's proposals. Each holiday would last for 10 days and would eliminate the state sales tax for most goods, barring tobacco and alcohol. "The situation is critical," the letter states. "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." Bringing people into the shops could also help millions of retail workers keep their jobs, the NRF added.
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