Time to eat the grocery tax
Coeur d'Alene Press | UPDATED 9 years, 1 month AGO
Republican legislators want it.
Democratic legislators want it.
The people of Idaho want it.
Even the lieutenant governor wants it.
So please, governor. Don’t veto the bill that, starting in July 2018, would eliminate the 6 percent sales tax on store-bought food. The measure would also represent a rare, tangible tax cut that would positively impact virtually every Idahoan.
In fairness, Gov. Butch Otter’s stated opposition has some fiscal rationale behind it. Removing the tax “destabilizes the revenue stream” that has put Idaho in a strong economic position, with annual surpluses that have allowed the state to invest heavily in teacher salaries and other education priorities. The governor worries that pulling an estimated $75 million off the revenue shelf could hurt the state in the short run — we have an estimated $30 million of unbudgeted road repairs to do after the harsh winter — and in the long run, with much more to do on the education front and elsewhere.
But morally and financially, we support eliminating the tax.
As 37 other states have determined, taxing the food that every family needs for survival simply isn’t a defensible policy. In a somewhat disingenous gesture, Idaho makes available a $100 to $120 annual tax credit for consumers, but it amounts to thousands of residents loaning money to the state government interest-free for up to a year at a time. With elimination of the tax, that money could be put to work immediately, for the good of the consumer and the economy. Since that 6 percent already falls into the disposable income category, there’s every reason to believe many citizens will spend it on more food or healthier food products, or on other local goods and services, helping sustain economies like ours throughout the year, particularly during slower winter months.
The governor has until April 12 to take action on the bill. If he does nothing by that deadline, it becomes law.
Then we’d see how far a little tax relief can really go.