Now that Kansas’s economy is on solid footing, state lawmakers’ first action come January should be to eliminate the state sales tax on food.
Kansas is only one of a dozen states to tax food. At 6.5%, it’s the second-highest rate in the nation, second only to Mississippi.
And because the tax is the same no matter one’s income, it’s regressive. That is, it takes a disproportionate chunk out of the wages of low- and middle-class workers than that of the better off.
The proposal would save consumers $6.50 for every $100 spent on groceries. Families that spend an average of $200 a week on groceries would save $676 over a year.
Studies show that a four-person household living on $25,000 a year spends almost 30% of its income on food. For high-end earners, their food budgets are in the single digits.
When people can afford to put food on the table, their standard of living increases dramatically, especially during these inflationary times.
Eliminating the food sales tax would cost Kansas about $450 million.
Can we afford it?
Yes.
Tax collections for the first quarter of fiscal year 2021-2022 are up 18.9%, some $440 million. In November, Kansas budget officials increased the state’s projected revenues for this fiscal year by $1.3 billion, thanks to strong economic growth.
GOV. LAURA Kelly campaigned on cutting the food sales tax, but has waited until state coffers were flush enough to take action.
We appreciate her prudency.
More than that, we are grateful for how she has kept her promises to invest in our schools, roads, foster care system and other essential services.
That’s the difference between actions that benefit all Kansans and those that benefit only high-income earners, such as in 2012-13 when lawmakers cut the top rate of the state’s income tax by almost 30% and that on certain business profits to zero.
Immediately, revenues plunged.
