Thu 4 Feb 2010
Taxing Food As The Solution?
Posted by RichSlick under The Fed, Watch Out
No Comments
I was just amazed when I saw this article about the city of Phoenix implementing a sales tax on groceries! If any astute readers can tell me what they see wrong with the logic, you’ll win a coveted RichSlick kudos! I’ve given you a hint (see bold words).
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.
Uh, excuse me here but where is really the desperation in this scenario? So the city’s brilliant plan is to make it difficult for people to buy food that they need to survive so they can have bureaucrats and other “essential” services survive? Is this the worlds greatest oxymoron or what?
Long before we had police, fire or city officials, we had land and labor that meant food but somehow we’ve now inverted that logic where people must starve in order for police, fire and city officials survive. I can tell you what is going to happen, the people of Phoenix are simply going to drive to Mesa or any other nearby town that doesn’t have this silly tax and the city of Phoenix will end up losing revenue.







