Cutting back

Rather than scrap their holidays, Louisiana and Florida chose

to cut back on them.

In the face of a $2 billion budget shortfall, Louisiana decided to levy a reduced 3 percent tax during its hunting equipment holiday next month rather than exempt it entirely from the state’s 5 percent sales tax, just as it did on school supplies last month. It also eliminated the state holiday for goods purchased to prepare for hurricanes.

The reduced tax rate for school supplies and hunting equipment applies to items up to $2,500. Two big-ticket items for $2,500 each

would qualify, according to the Louisiana Department of Revenue. But one purchase for more than $2,500 would not.

Florida’s shortened back-to-school holiday this year will still cost the state about $26 million in sales tax revenue, according to a legislative analysis. But having its normal 10-day holiday instead of the three-day break would have cost another $20 million. The disparity? Most of the holiday shopping is done on the weekend.

One fan of tax cuts who is not a fan of the

holidays is Republican state Sen. Tom Lee, who chairs the Senate Appropriations Committee. He prefers giving Floridians cuts in other taxes, as the Legislature did this year.

Lawmakers lowered the property tax and a tax on manufacturers. Both cuts were sought by Republican Gov. Rick Scott.

“I think the tax-free holiday makes great politics and lousy economics,” Lee said. “They are wildly popular, but they cannibalize on spending decisions that would have been made anyway.”