Online Sales for the Entire Holiday Shopping Season Forecasted at $184 Billion
In my previous blog, I described how the consumer move to online shopping that began to accelerate at a record pace in March when the pandemic first led to non-essential business closures, has exploded during this holiday shopping season.
Adobe Analytics now forecasts online sales for the entire holiday shopping season at $184 billion, which is a 30% increase from last year.
The Tax Foundation recently analyzed the sales tax regimes in states around the country and ranked them in terms of the impact of sales and excise taxes on the business climate of each state. The highest-scoring states were those without a state sales tax: New Hampshire, Delaware, Montana, Oregon, and Alaska. Even these states did not receive perfect scores because each state does impose excise taxes, and Alaska permits local sales taxes. The report indicates that the states with the next best scores — Wyoming, Wisconsin, Maine, Idaho, Michigan, Virginia, and Massachusetts — have well-structured sales taxes and modest excise tax rates. States that didn’t rank well have high sales tax rates, high excise tax rates, complicated sales tax administration. The lowest-scoring states are Alabama, Louisiana, Washington, Tennessee, and Arkansas.
The map below indicates how each state in the country ranks for 2021.