Join Utahns Against Hunger in opposing an increase on the sales tax on food

An Open Letter To Governor Herbert and the Tax Equalization and Equalization Task Force

Dear Governor Herbert and Members of the Tax Restructuring and Equalization Task Force,

In a recent poll by Utah Policy and Y2 Analytics, more than 67 percent of Utahns oppose reinstating the sales tax on food, even if it includes some kind of relief for low-income Utahns have consistently said the sales tax on unprepared food is bad idea.

We, the undersigned organizations, join to oppose an increase to taxes on groceries because it is regressive and will hurt Utah families.

Many families are already struggling to meet their basic needs. We see in the news every day the impact the lack of affordable housing has on communities across the state. Families also report that access to transportation and child care also present challenges to their monthly budgets. Increasing the sales tax on unprepared food will strain those budgets even more. When every earned dollar counts, the Utah State Legislature shouldn’t be implementing higher taxes that will strain a family’s ability to pay rent, utilities, and other basic needs.

Research shows that the sales taxes on food increase food insecurity. Specifically, a 2016 study by Auburn University found that a 1% increase in the grocery tax increases the probability of households being food insecure by 0.6%. Factors in the study indicated that households in rural communities, young households, and households with children are more susceptible to food insecurity. As a young, rural state with large families, this concerns us.

The Task Force will be proposing increasing the state portion of the sales tax on food from 1.75% to 4.85%, an increase of 177%. Task Force supporters of the food tax restoration will propose an offset of some kind to try and mitigate the impact on the poorest. Unfortunately, such programs in other states have proven to be unsuccessful in reaching most of the targeted population. These programs also ignore others who are hurt by the food tax but are left out of the rebate, such as low-income senior citizens and the working poor. Additionally, both rebates and credits are vulnerable to being eliminated when state budgets get tight. For example, Kansas repealed their Food Sales Tax Refund in Tax Year 2013.

Furthermore, there are several studies that link health outcomes, healthcare costs, housing stability, educational attainment, and job security to food insecurity. Hunger is an early determinant for several of the issues that the Legislature has been trying to address for the past decade, and this increase puts too many families at risk of sliding further into poverty.The Utah State Legislature needs a better way to find revenue than through a regressive grocery tax. We urge you NOT to increase the tax on food.

Regards,

I am authorized to sign on behalf of the organization below: *This question is required.

1. Contact Information: *This question is required.

First Name

Last Name

Title

Company Name

City

State

Zip

Email Address