Columbia, S. C. - Governor Hodges today called for the creation of a national sales tax holiday to stimulate the ailing national economy before the upcoming holiday season.

"A national sales tax holiday would be an incredible boost during this economic slowdown," Hodges said. "Tax-free weekends generate great sales activity as we've witnessed with South Carolina's holidays. This targeted tax relief would benefit consumers and merchants, and move our economy in a more positive direction."

Under the Governor's plan, states would remove sales tax from certain items sold over a designated period prior to the Christmas season. Participating states would be reimbursed any lost revenues by the federal government following the sales tax weekend.

Some economists and business leaders support the plan for a national sales tax holiday similar to South Carolina's as a way to boost consumer spending.

For the last two years, South Carolina has held a three-day sales tax holiday in August. These holidays encourage early back to school sales and purchases as well as an increase in out-of-state shoppers to South Carolina retailers. South Carolina merchants estimate that last year's sales tax holiday increased sales volume 75 to 80 percent, and brought in an estimated $250 million.