NT - Gift Cards

[thomtax]

On one of the financial networks this week, they advised that this is not a good year for giving gift cards. They feel that a lot of the companies issuing cards will probably not be in business, or will be in bankruptcy, rendering the card worthless.

LT

[BHoffman]

I prefer to give (and receive) the ever-popular "universal gift certificate".

CASH!

[Edsel]

Another Loss of Profits

Gift cards are another source of profits for retailers counting some of them that never get the full value redeemed. I see "moderate" gift giving as a declining market - the $50-$75 gifts. As long as there are parents there will be toys for children and cars for wives.

One of those multi-forwarded e-mail messages is making the rounds, and lists some 25-30 retailers whose status is uncertain, and a warning not to buy gift certificates. I hope they don't go under -- just more polarization of the industry for WalMart and a few others.

Loss of sales tax revenue is another problem. I had to say something about taxes to make this thread legitimate.

Seriously, there is a lot of Tennessee radio here in Huntsville, AL and they are facing a one-billion $ shortage in their state budget of $30billion. Most of their budget is non-discretionary. Already talk is being revived about converting their tax structure to include an income tax - one of only 7 remaining states without one.

[TAXBILLY]

Gift cards are another source of profits for retailers counting some of them that never get the full value redeemed. I see "moderate" gift giving as a declining market - the $50-$75 gifts. As long as there are parents there will be toys for children and cars for wives.

One of those multi-forwarded e-mail messages is making the rounds, and lists some 25-30 retailers whose status is uncertain, and a warning not to buy gift certificates. I hope they don't go under -- just more polarization of the industry for WalMart and a few others.

Loss of sales tax revenue is another problem. I had to say something about taxes to make this thread legitimate.

Seriously, there is a lot of Tennessee radio here in Huntsville, AL and they are facing a one-billion $ shortage in their state budget of $30billion. Most of their budget is non-discretionary. Already talk is being revived about converting their tax structure to include an income tax - one of only 7 remaining states without one.

Outback Steakhouse in my area is offering a $20 gift card if you buy $ 100 in gift cards. I'm getting a 20% return on my money assuming Outback doesn't go out of business.
taxbilly