Call it a $3 million-plus sure bet.
Forgoing that amount of money in these tough economic climes might sound like a gamble, but giving retail shoppers a sales-tax reprieve should spell higher profits for retailers.
The $3 million was the amount the state”™s Office of Fiscal Analysis projected that Connecticut would lose during the sales tax-free week that just finished.
Compared with the $8.5 billion deficit the state faces over the next two years, that $3 million is just a drop in the bucket.
What makes the tax-free shopping and timing ”“ school is just around the corner ”“ even more attractive was that neighboring states Massachusetts and Rhode Island chose not to offer any retailing incentives.
“Given the present state of the economy, the annual Sales Tax Holiday Week has become even more important,” Gov. Jodi Rell said. “Consumers can get the most for their money and merchants see an increase in sales ”“ everyone benefits.”
Taking tax out of the retail equation always spurs spending by the consumer, no matter the economy. Critics say tax-free shopping only produces a short-lived boost for retailers. But a boost is still better than a bust. And let”™s not forget the cash for clunkers program that exceeded its authors”™ wildest dreams.
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FOA was A-OK
The U.S. Senate”™s Select Committee on Ethics found that Chris Dodd did not commit any violations when he obtained a loan from Countrywide Financial”™s Friends of Angelo (FOA) program.
Angelo, of course, is Angelo Mozilo, the former CEO of the mortgage company who last month was charged by the Securities and Exchange Commission with securities fraud and insider trading.
Dodd is chairman of the Committee on Banking, Housing and Urban Affairs.
“While the committee finds no substantial credible evidence as required by committee rules that your Countrywide mortgages violated Senate ethics rules, the committee does believe that you should have exercised more vigilance in your dealings with Countrywide in order to avoid the appearance that you were receiving preferential treatment based on your status as a senator.”
That”™s what the committee wrote in a letter to Dodd.
Dodd received two Countrywide mortgages via their VIP program in 2003, one for his home in Hamden and the other for a residence in Washington, D.C.
The only positive aspect to this investigation is the legislation that was introduced to strengthen mortgage disclosure requirements for members of Congress.
The bill was brought by Barbara Boxer and Johnny Isakson, chairwoman and vice chairman of the ethics committee.
The bill would require members of Congress to “make a ”˜full and complete”™ disclosure of residential mortgages, which includes the date that the mortgage was entered, the range of the amount, the interest rate, the term and the name and address of the creditor.”
VIP, FOA ”“ it SMELLS to us. Maybe something smelled to Boxer and Isakson as well.
