Thursday, February 4, 2010

Phoenix AZ OKs 2% Tax on Food

Trust me, this will be so popular with every city and county managers in the U.S. Also with public unions (police, firefighters, teachers, etc.), which already successfully campaigned in Oregon for "tax the rich" scheme that would save their jobs and pensions at the expense of higher tax for higher-income earners and private businesses, big and small.

Tax on food, you can say it is "tax everyone" scheme. But there is no equality here, because the poor will suffer more as the proportion of income going to food items is higher for them. (Unless of course they rely 100% on food stamps in Phoenix.)

Phoenix gives OK to 2% tax on food (2/3/2010

"Desperate to save police, fire and other city jobs, a divided Phoenix City Council on Tuesday approved a sales tax on grocery items that will generate tens of millions of dollars a year.

"The 2 percent food tax will take effect April 1 and expire after five years, though Mayor Phil Gordon said the council has the option of reversing its decision after it hears from the public during 15 budget hearings planned for this month.

"The tax on milk, meat, vegetables and other food purchased by shoppers will generate an estimated $12.5 million for the fiscal year that ends June 30. It will raise another $50 million for fiscal 2011. Food purchased with food stamps will not be taxed." [The article continues.]

$12.5 million new tax will fill only 5% of $241 million deficit that Phoenix has to fill.

Let's all go bankrupt and receive food stamps. Walk away from the mortgages. Why bother struggling, trying to make ends meet on your own? All they (government, federal and state and local) do is to take from us. "It's for your own good", they all say.

Wait till they start talking about VAT again (which I suspect may be coming soon), and kiss any shred of hope for recovery goodbye.

States that already have tax on groceries: Arkansas, Georgia (same rate as state sales tax), Illinois, Lousiana (same rate as state sales tax), Missouri, North Carolina (same rate as state sales tax),Tennessee, Utah, Virginia, West Virginia.

(The information source, the Federation of Tax Administrators, is short on staff, so the information is 2-year old. The Federation hopes to update the data in January 2010. Well that's gone.)


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