Yes, you know food prices are increasing and that eating at home is getting more expensive. But how does your state administration plan to help you? Are you living in the counties where officials aim to do more to help residents?
Several states are considering temporary rollbacks on food taxes. The hope is to provide relief for Americans affected by price surges at grocery stores. Inflation is 8.5%. Food is the main contributor to the inflationary spike. Food costs rose by 8.8% in March. (source)
Tax rollbacks are under consideration to ease the financial stress. There are thirteen states that tax groceries. In a handful of them, there is a push to pause the levies. These places include Alabama, Oklahoma, and Tennessee. Tennessee recently announced a 30-day suspension of the 4% grocery sales tax. (source)
Alabama - 4%
Arkansas - 0.125%
Hawaii - 4%
Idaho - 6%
Illinois - 1%
Kansas - 6.5%
Mississippi - 7%
Missouri - 1.225%
Oklahoma - 4.5%
South Dakota - 4.5%
Tennessee - 4%
Utah - 1.75%
Virginia - 2.5%
Most of those states have considered reducing the levies.
Jared Walczak is the vice president of state projects at the Tax Foundation. Walczak said, "The intense focus this year has everything to do with high grocery prices. [But] there are far better ways to help lower- and middle-income households, including grocery tax credits, than the grocery tax exemption. A better solution may be to provide a one-time credit of $75."
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*Disclaimer: This article is for general knowledge and informational purposes only.*