Let's End Grocery Taxes

[sgrizzle]

http://www.ktul.com/news/stories/0109/585600.html

quote:
Tulsa - You may soon be saving money at the grocery store. A state senator wants to eliminate the sales tax on food.

Supporters of the plan say it could save Oklahoma families hundreds of millions of dollars. It's all an effort to stimulate the local economy.

Senate Bill 42 would effectively eliminate the states sales tax on groceries which is currently 4.5%. axing it, means a-typical family could save hundreds a year.

By the time she had finished checking out today, Linda Collins had spent $117 on groceries, including $9.24 cents on tax.

She says, "Well, of course, like everyone I think i'd like to eliminate more taxes, we're taxed on everything."

"If we are gonna cut taxes, this oughta be the one we focus on."

The grocery tax alone, says Senator Gumm, siphons hundreds of millions of dollars out of Oklahoma wallets.

She says, "It is the most harmful, regressive tax that dis-proportionally harms those middle income families and those families at the lower end of the scale because they have to pay a greater percent of their income on sales taxes for groceries than anybody else does."

"I shop on a weekly basis."

Rhonda Brown has one of those families: Taking care of her two-year-old, her mother who just had a stroke, and recuperating herself from battling cancer for two years.

"I was making $17-dollars-an-hour, and social security, I'm living on less that $1,000 a month."

Food stamps help supplement her grocery bill, but there's still a gap, which literally makes every penny count.

"And I actually feel like soda and stuff is like something that I can't afford."

Senator Gumm says, "We need to help these families who are struggling every month to make ends meet."

Rhonda's hoping it passes if anything to help create a little breathing room in the budget.

Gumm says, "Oklahomans should contact their senators and reps and say if you're going to cut any tax, grocery is the tax to cut."

The bill is scheduled for discussion next month. We'll keep you informed of its progress as it works its way through the legislature.

[Hoss]

quote:Originally posted by sgrizzle

http://www.ktul.com/news/stories/0109/585600.html

quote:
Tulsa - You may soon be saving money at the grocery store. A state senator wants to eliminate the sales tax on food.

Supporters of the plan say it could save Oklahoma families hundreds of millions of dollars. It's all an effort to stimulate the local economy.

Senate Bill 42 would effectively eliminate the states sales tax on groceries which is currently 4.5%. axing it, means a-typical family could save hundreds a year.

By the time she had finished checking out today, Linda Collins had spent $117 on groceries, including $9.24 cents on tax.

She says, "Well, of course, like everyone I think i'd like to eliminate more taxes, we're taxed on everything."

"If we are gonna cut taxes, this oughta be the one we focus on."

The grocery tax alone, says Senator Gumm, siphons hundreds of millions of dollars out of Oklahoma wallets.

She says, "It is the most harmful, regressive tax that dis-proportionally harms those middle income families and those families at the lower end of the scale because they have to pay a greater percent of their income on sales taxes for groceries than anybody else does."

"I shop on a weekly basis."

Rhonda Brown has one of those families: Taking care of her two-year-old, her mother who just had a stroke, and recuperating herself from battling cancer for two years.

"I was making $17-dollars-an-hour, and social security, I'm living on less that $1,000 a month."

Food stamps help supplement her grocery bill, but there's still a gap, which literally makes every penny count.

"And I actually feel like soda and stuff is like something that I can't afford."

Senator Gumm says, "We need to help these families who are struggling every month to make ends meet."

Rhonda's hoping it passes if anything to help create a little breathing room in the budget.

Gumm says, "Oklahomans should contact their senators and reps and say if you're going to cut any tax, grocery is the tax to cut."

The bill is scheduled for discussion next month. We'll keep you informed of its progress as it works its way through the legislature.

Seems like someone brings this up for discussion at the capitol at least every two years.  Nothing ever comes of it.

I'd be surprised if it did this year, especially given that so many states are strapped for cash (California, anyone?)

[grahambino]

Now, I do agree this tax should probably be done away with, but not for the reasons given by the woman in this article.

Now, if you can't afford the staple items, that would garner a little more sympathy than not being able to afford 'soda and stuff'.

Its a damn shame when you can't afford 'soda and stuff'.

[YoungTulsan]

I would be shocked if this ever went through.

Oklahoma is a poor state, and it squeezes as much revenue out of lower income people with regressive taxes.  Our HIGHEST single taxpayer bracket is $10,000.  So to the State of Oklahoma, you are a rich man if you make over $10k a year.  Yet if you make under $1,000 the State still wants 0.5% of your income.  How silly is that?  Couldn't we save more money on operating expenses by not collecting pennies from the poor?

[cannon_fodder]

Is pop a grocery item?

Beer is better for you than pop, so why not beer?  How about candy?  Chips?  Raw ingredients for food products - what about the barley and malt I use for my beer brewing?  How about products that can be food or not food like pumpkins.  Is it food if I buy it with plans of making pie but taxable if I use it as a decoration?

IF groceries are cheaper than people will eat out less.  Should we not tax food at restaurants to be fair?

If groceries are not taxed, why not pharmaceuticals? If we aren't taxing them does it count for Viagra too or just "needed" items?  Who decides what is needed?

If we don't tax pharmaceuticals because they are a necessity what about clothing?  We all need clothing.  But we should still tax furs and other cloths that people really don't NEED and the government can figure out what that includes.  Poor people have to buy clothing too.

You know what else poor people have to buy in Oklahoma?  Gasoline.  We shouldn't tax gas because people HAVE to drive to get to work in Oklahoma and it isn't fair to the poor people.

We also need places to live.  Property taxes are not fair to poor people.  Even if they rent, the cost of the property tax is passed on to them by their land lord.  It is a regressive tax punishing the poor people for their need for shelter.

People also need toiletries.  Soap, toothpaste, deodorant and the like.  Healthy societies are more productive societies and these are things EVERYONE needs.  Taxing them is regressive and unfair.

And cotton is a primary cash crop in Oklahoma.  Cotton is a staple of everyday life in America and taxing the consumption of cotton hinders our farmers.  All cotton products should be tax free.

Firearms and ammunition are protected by our constitution.  Because of taxes on the sale of those items they are more expensive.  The added cost makes them more difficult to afford for poor people and it unfairly deprives them of exercising their right to bear arms.  Furthermore, hunting and fishing is a source of food - so by depriving them of a right to bear arms you are hindering their ability to get food... which should be tax free.  Thus, firearms and ammunition should be tax free.

And what good is food without dishes to eat off off, silverware to eat with, a stove to cook it on, and a table to enjoy the meal as a family.  Taxes those objects reduces the ability of the working poor to enjoy food at the same level as everyone else.  People need to prepare and eat food and a tax on those items prevents them from doing so.

Furthermore, rich people spend more on food than poor people.  Eating lobster, caviar, and name brand products tax free would save a rich family 8% of 300 weekly bill or nearly $25 a week.  A poor family only spend $150 buying "lesser" products and off name brands.  The poor family would only save $12.50 a week.  This is a tax cut for the rich!
- - -



Laugh at whatever ones you want.  Just saying "food is tax free" entails a lot more decision making, lobbying, and cherry picking of items than you can imagine.  

$10 a week.  Do you smoke?  Drink? Eat out  Drive a pickup or SUV?  Do you have cable?  Ever eat out?  You can save $10 a week very easily - if you can't than the extra $10 a week probably isn't going to be the saving grace in your financial situation.

We need taxes.  If we are going to have taxes being as nondiscriminatory as possible is the best way to do it.  While cutting the tax would save millions - it would simply be taxed somewhere else to make up for the loss.

[nathanm]

quote:Originally posted by cannon_fodder


We need taxes.  If we are going to have taxes being as nondiscriminatory as possible is the best way to do it.  While cutting the tax would save millions - it would simply be taxed somewhere else to make up for the loss.

We can look to other states for good definitions of nontaxable groceries. Generally it means food items that are not already prepared for consumption. So prepared fried chicken from the deli? Taxable. Frozen breaded Tyson chicken parts? Not taxable.

Already made potato salad? Taxable. Potatoes, mayo, and the other ingredients? Not taxable.

Generally speaking, if you can buy it with food stamps, it shouldn't be taxed, IMO. And it's perfectly fair to everyone, since the rich people won't be paying sales tax on their food either.

(Not that I wouldn't support a program that didn't charge sales tax on many items, including food, for people who make a low enough income that they are eligible for government assistance)

[sgrizzle]

quote:Originally posted by nathanm


Generally speaking, if you can buy it with food stamps, it shouldn't be taxed, IMO. And it's perfectly fair to everyone, since the rich people won't be paying sales tax on their food either.

I see the access oklahoma card used all the time at quiktrip on pop and candy bars, those are definitely prepared foods.

[deinstein]

I don't mind the grocery tax. If people can't afford as much, it's likely for the best. We are the only country in the world where the poor are obese. I have little sympathy.

[TheArtist]

quote:Originally posted by nathanm

quote:Originally posted by cannon_fodder


We need taxes.  If we are going to have taxes being as nondiscriminatory as possible is the best way to do it.  While cutting the tax would save millions - it would simply be taxed somewhere else to make up for the loss.

We can look to other states for good definitions of nontaxable groceries. Generally it means food items that are not already prepared for consumption. So prepared fried chicken from the deli? Taxable. Frozen breaded Tyson chicken parts? Not taxable.

Already made potato salad? Taxable. Potatoes, mayo, and the other ingredients? Not taxable.

Generally speaking, if you can buy it with food stamps, it shouldn't be taxed, IMO. And it's perfectly fair to everyone, since the rich people won't be paying sales tax on their food either.

(Not that I wouldn't support a program that didn't charge sales tax on many items, including food, for people who make a low enough income that they are eligible for government assistance)

What? More welfare for the poor?!

[cannon_fodder]

I'm not really against getting rid of the taxes on groceries, I just fear the problems and slippery slope i might start.  I trust government can destroy the seemingly simple thing.  AND, the taxes will simply be made up somewhere else.  

Couple with the fact that they will get their  tax money form me anyway... screw it.  Unless it somehow encouraged people to eat better - which is another slippery slope I suppose.

[sauerkraut]

Most states don't tax food, but Oklahoma is in good company I believe Missouri and Kansas tax food too, (Oklahoma's neighbors). It's like thsy say Food taxes are hard to swallow.[}:)]

[shadows]

Often we enter posts the possibility of certain item, not associated, getting by in discussions of removing the most regressive taxes on the essentials of survival sales taxes on stables used in the food chain.  There are others that the tax monsters are taxing which are essential to life support including property values, assessed after 50 years of deterioration, has a tax value of 10 times the cost of building their homes  The Gas, electric and phones, needed for emergencies, and sustain life, have increased hundreds of times  

We are in a new age of electronics where the bar system and computer cash register can designate at the assumed speed of light such items that are taxable or nontaxable to be printed out on the tape.

The independent new papers are subject to an onslaught because they can and are able to print articles on wage increases on National, State and Local governments that are being paid by the poor who are cold and hungry in the night.  The new theme is lets tax them and many will loose subscribers that is the only source of  news of the inequities in the present.

Those who depend on TV for news and entrainment will be subject to mass confusion when the new system is mandated allowing simultaneous broadcast over their present channel, dividing the advertising spectrum further.