More States Push to Eliminate Grocery Taxes for Shoppers

(Thechieftainspear) – As grocery prices remain high, several states are pushing to eliminate or reduce sales taxes on food items to ease the financial burden on residents. Arkansas, Tennessee, Mississippi, and Alabama are among the states considering cuts, with proposals gaining traction amid concerns over household expenses.

Arkansas Governor Sarah Huckabee Sanders recently unveiled a plan to remove the last remaining portion of the state’s grocery sales tax, a 1/8th-cent levy. The proposal follows previous efforts by past administrations to gradually phase out the tax. If approved, the measure would eliminate approximately $11 million in revenue, but Sanders believes state programs can absorb the loss.

Other states are also moving in a similar direction. Tennessee lawmakers have introduced a bill to eliminate the state’s 4% grocery sales tax, a long-standing issue that has been debated for years. Some Democrats in the state have unsuccessfully pushed for the change before, citing high tax rates on basic necessities like milk and bread. However, despite Republican support for the latest proposal, it remains uncertain if the measure will pass, as Governor Bill Lee did not include the cut in his budget plan.

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In Alabama, lawmakers are pushing to eliminate the remaining 3% grocery tax. Last year, the state approved a gradual reduction, bringing the rate down from 4% to 2%. Democratic Representative Adline Clarke emphasized that removing the tax would provide direct relief to working families.

Mississippi legislators are also considering a tax reduction, with a proposal to eliminate the state’s 7% sales tax on groceries currently moving through the legislature. However, similar efforts in other states have faced obstacles. Last year, South Dakota voters rejected a ballot initiative that would have repealed the state’s grocery tax.

Over the past few years, several states have successfully phased out grocery taxes. Virginia, Oklahoma, and Kansas have removed their state-level levies, and Illinois plans to eliminate its 1% grocery tax next year. Currently, nine states still impose a sales tax on groceries: Arkansas, Hawaii, Idaho, Illinois, Mississippi, Missouri, South Dakota, Tennessee, and Utah. Hawaii and Idaho offer tax credits to offset the cost for residents.

While grocery tax reductions can make state tax systems less regressive, they also come with financial trade-offs. With potential federal budget cuts on the horizon, some experts suggest states should explore other forms of tax relief, such as expanding earned income tax credits or child care tax credits, to better target those in need .

Lailyah Duncan

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