Time for this tax to die
Coeur d'Alene Press | UPDATED 11 years, 3 months AGO
Food for thought for the 2015 Idaho Legislature: Eliminate the sales tax on groceries.
True, the state already offers residents a $100 annual grocery tax credit - $120 for the elderly - but everyone still must fork over that extra 6 percent on every grocery store food purchase, then wait for the state to pay them back once a year.
Eliminating the tax altogether would keep that money in shoppers' pockets, and with stagnant Idaho wage increases generally being outpaced by inflation on food, every penny saved counts. There's also something odious about government charging a substantial tax on groceries; a tax on one of life's essentials that is the exact same whether you're a multi-millionaire or a family struggling to get by.
Tax credit supporters argue that eliminating the sales tax on groceries would deprive the state of more than $60 million annually from its general fund. However, proponents of eliminating the tax say the figure is overstated; that U.S. history is replete with examples of lower taxes strengthening the economy so government ends up with more funding in the long run.
In our view, the benefits of eliminating the sales tax on groceries outweigh other options. Foremost among the benefits is the simple act of allowing Idahoans to keep a little more of their money as they earn it, which frees that money to be spent on other Idaho goods and services rather than sit in a state tax account. With much lower gas prices helping the average consumer, Idaho is poised for economic growth that would be bolstered further by killing the grocery sales tax and augmenting Idahoans' disposable income.
It's not lost on us, either, that simplifying Idaho's tax structure while removing the cumbersome collect-and-distribute process would be a positive step for government.
Even if their reasons differ, many Idaho Republicans and Democrats favor eliminating the grocery sales tax. That's as powerful an indication of good, fair legislation as you can find.
The tax credit isn't bad. Eliminating the tax is just better.