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Shifting Gun Sales in Texas

A Texas legislator has proposed exempting handguns from the 6.25 percent state sales tax on March 2, Texas Independence Day.  He claims this will create jobs.

It is likely that this brilliant idea will increase total gun sales, as reducing the net price of guns will increase the quantity demanded.  But it would also shift gun sales away from most other days in the year.  I would bet that employers of gun shops would in the long run cut employment and rely on overtime and temporary workers around March 2.  It’s not clear that retail jobs would be created.  Jobs in gun manufacturing would increase as production increases, but that wouldn’t help Texas very much, since most guns sold in Texas aren’t produced here.  Of course, one also wonders whether more guns in Texas will add to our safety!