Sales Tax Saving Versus Reality

Bel Air mall is packed with shoppers this weekend--many are eager to spend.

“Very important because we have six kids and two grandbabies and all of them are in school,” says Alana Watkins. I asked people roughly how much they spent today and how much they think they've saved through the sales tax holiday. Alanna says she's spent about $500 so far. She guessed she saved about $200, in reality it’s closer to $48.

This sampling of supply side economics gives people an excuse to spend while in many cases the savings aren't close to what people think. I have the advantage of hindsight and a calculator--while most shoppers are probably just looking at what they're taking home rather than what they're giving up.