Wednesday, March 15, 2023

Sid Salter: Will Inflation Spur Mississippi to Cut or Eliminate Sales Tax on Food?

 For well over three decades, Mississippi has been home to a population that features the poorest citizens in the country paying the highest sales tax on food. The sales tax on food remains at seven percent.

For those same three decades, there has been the ebb and flow of efforts to cut or eliminate “the grocery tax” in Mississippi. Neither Democrats nor Republicans can lay a particular claim to the moral high ground on the issue.

Sales tax was the brainchild of Depression Era Democrat Gov. Mike Conner. The monolithic Democratic Party in Mississippi perpetuated and raised that tax until Republicans gained a legislative majority and the GOP began to dominate statewide offices and they kept the issue at status quo.

But Conner’s sales tax – created in the early 1930s to erase a nearly depleted state treasury by creating a tax that everyone would pay including those who owned no property to tax – evolved into a system that provided funds for municipal and county governments as well through diversions.

So, in the 1990s and 2000s, efforts to cut or eliminate just the sales tax on food and “swap” the subsequent lost revenue with higher taxes on tobacco were met with opposition from county and city governments who howled that sales tax cuts would “force” them to raise property taxes.

That reality was juxtaposed with efforts – sometimes in the same legislative sessions – to allow local governments to raise general sales taxes through programs like the “Mississippi Optional Sales Tax” or MOST. Perhaps the most serious attempt at an adjustment in the state’s sales tax on groceries came during the administration of Republican Gov. Haley Barbour – who prevailed in a standoff with then-Lt. Gov. Amy Tuck. Tuck and her allies fell short of getting the measure through the State Senate.

Fast forward to the current 2023 state election cycle. While there have been trial balloons floated to cutting or eliminating the state’s grocery tax, those proposals have in some manner been intertwined with the ongoing effort to further reduce or eliminate the state’s income tax. With a 2023 income tax cut looking increasingly like a legislative nonstarter, there have been pockets of support for the concept.

State Agriculture and Commerce Commissioner Andy Gipson came out in favor of cutting the grocery tax, a repeat of his position in the 2019 election cycle. But Gipson’s support for the concept did not have a detailed plan to accomplish it.

If there is a path to state, county and local governments coming to terms with the sales tax on food in the state, it might lie in the confluence of the international and national economies that have produced rampant inflation for the last two years in which grocery prices overall have been as much as 11.7% higher (currently 10.1%) with prices of various foods (eggs) fluctuating as much as 60% higher.

Eggs are a rather volatile example, exacerbated by the H5N1 avian influenza virus that has seen more than 58 million chickens slaughtered across 47 states to stop the spread of the virus and producing egg shortages that are in recent days beginning to subside, but prices remain higher. Poultry is Mississippi’s leading cash crop at $3.8 billion, with egg production accounting for about $575 million.

The Consumer Price Index shows cereal and bread are up over 15%, dairy products are up 14%, and meat is up over 8%. The U.S. has not seen food inflation numbers this bad since the OPEC oil embargo of the early 1970s and the subsequent energy shortages and interest rate hikes during the Carter Administration in the late 1970s.

Again, Mississippians are the poorest people in America paying the highest sales tax on food. Food price inflation is over 10 percent. Interest rates continue to inch upward in reaction to remaining economic to inflation and impacts of the COVID shutdown. And it’s an election year.

If Mississippi isn’t going to cut or eliminate grocery taxes now, there’s a good chance that the state never will. Elimination is highly unlikely, but a reduction might still get traction.



Sid Salter is a syndicated columnist. Contact him at sidsalter@sidsalter.com

33 comments:

Kingfish said...

So what exactly are cities supposed to do with the loss of revenue? Especially since they are all getting hit with a PERS rate hike next year.

Anonymous said...

Did Sid mention EQUITY in his column? I don't read his crap.

Anonymous said...

@Kingfish
Raise property taxes. Most poor peoples are renters on Section 8. Rich assholes with mortgages can afford it. Poor folks can’t.

Anonymous said...

I'm going to presume 8:43 is a troll and that nobody who reads this blog is actually that stupid.

Anonymous said...

Mississippians on food stamps SNAP benefits do no pay sales tax on food purchases, only those of us who buy our own food do.

Anonymous said...

I liked the idea of cutting the tax from 7% to 1.3% with the purpose of not touching the city diversion but cutting the state's 5.7% (18.5% of the 7% currently collected is diverted to municipalities). I have no idea what Sid is talking about with counties because I don't believe counties have ever received a sales tax diversion only municipalities.

Anonymous said...

Is Sid really stupid enough to not understand the concept of bait and switch. Just move a tax from one column to another.

I really wish KF would quit being inclusive and adding Sid's ramblings to this blog.

Anonymous said...

Federal food stamp spending has gone from $40 billion in 2008 to $190 billion in 2023. A third of people in this state are getting food stamps. With all this free money is it any wonder food prices are going up?

Meanwhile, grocery purchases with food stamps don't get the tax assessed. Abolish it.

Anonymous said...

Kingfish, to answer your question, I assume the state already has some good idea what percentage of the sales tax comes from groceries so they should be able to estimate what the hit will be from eliminating the sales tax on groceries. The 1.3% diversion could be increased on sales tax on non-grocery purchases to make cities whole.

But another poster was right, you can't argue about sales tax on groceries affecting the poor when sales tax is not assessed on SNAP.

I say leave well enough alone.

Unknown said...

There’s no greed like government’s greed

Anonymous said...

I certainly don’t know the numbers but would be interested in seeing a comparison of the effect of reducing sales tax on food vs eliminating income tax. Which would benefit the most citizens.

Anonymous said...

Several posters are correct. The poor pay no sales tax on food. Hell, they don't even pay for the food!

As ever, Kingfish gets his weekly jab in at PERS. One might think it's either a fetish or an addiction.

Anonymous said...

I've noticed Sid Salter's 'poor' spending lavishly on fried chicken, chips, soda pop and weird drug-candy-drink mix products in spit-n-git convenience stores and drug stores. 7% tax is collected there and at drive through processed food vendors. If they didn't pay tax there, they'd pay almost no tax at all. Please retain 7% tax at such locations.

Anonymous said...

One might also think your desire to defend PERS is an addiction for fetish 10:21.
But I don't kink-shame, so do you Boo Boo.

Anonymous said...

@10:21

and they dont pay income taxes

Anonymous said...

If Mississippi's economy is healthy enough to cut income tax one would think it would be healthy enough to reduce sales tax on groceries.

Anonymous said...

Sid, poor people do not pay for their food, do not pay sales taxes on food purchases using food stamps and do not pay state income taxes. The reason we have the exaggerated inflation in the country is because the gubmint keeps printing money to give them. The rest of working fools pay all the taxes to support their lives of leisure.

Anonymous said...

Just cut off welfare, give them some seeds and a seminar on gardening, the “handicapable” ones too, maybe they can have their local commie co-op deliver food to them from the community garden. There should be just one flat tax. I don’t care about other people, transgender squirrel studies, Ukraine/Russia, roads/bridges, police/military, for what we pay taxes for Im not seeing a good return. If you don’t work, you don’t eat.

EFGAlterEgo said...

8:50 AM
You underestimate the denizens of Jackson. Especially with who is their leader.

Anonymous said...

In over 30 counties in Mississippi, the SNAP eligibility rate among individuals in female-headed families with children is over 80%.

Hinds and Rankin are neighboring counties in central Mississippi and among the state’s most populated. But the SNAP eligibility rate in Hinds County (39.3%) is double the eligibility rate of Rankin County (19.3%).

Wonder which group Bennie represents when it's time for the Farm Bill, with both SNAP and Farm Welfare, comes to be voted on?

You scratch my back and I'll scratch yours, but don't ever tell the truth about the problem.

Anonymous said...

Sales taxes are the only taxes that some people pay. And everyone needs to participate in funding government.

Anonymous said...

With the current food prices the gubmint is making a bundle.

Anonymous said...

1:36 - And...sales taxes are taxes that some people NEVER pay.

Free untaxed groceries, telephones, subsidized housing, free day care (Head Start paid for by YOU), clothes and soup provided by non-profits.

Rides provided by city bus lines (guess who pays for that), Christmas presents provided by signing up for angel tree, free water, cut rate power, laptops provided by schools, before and after school meals provided by your tax dollars and backpacks and school supplies provided by others who donate and various benefactors.

Have you ever over the past hundred years known of a Chinese family who benefitted from this madness?

Anonymous said...

One might also think your desire to defend PERS is an addiction for fetish 10:21.

I didn't defend anything. Just pointed out the fetish. PERS is a train-wreck but I don't have a psychological need to bitch about it on a weekly basis. You?

Anonymous said...

KF - every proposal that has been presented in the legislature (at least, every one that had any degree of responsibility included, which doesn't of course include those filed just so the legislator could claim that he/she has filed xhundred bills trying to eliminate the tax) has held as a part of the elimination the reimbursement to the cities of the 'lost' revenue - just like the legislature has done when it 'eliminated' a portion of the cost of a car tag - something they have printed on your tag receipt (the legislative tax credit) - and reimbursed the counties for the money they would have received.

The cities would not be hurt by a reduction in the grocery sales tax, should it actually happen. Now - with the PERS crap - the cities, counties, hospitals, school districts and all will be hurt bad!

Anonymous said...

"KF - every proposal that has been presented in the legislature (at least, every one that had any degree of responsibility included, which doesn't of course include those filed just so the legislator could claim that he/she has filed xhundred bills trying to eliminate the tax) has held as a part of the elimination the reimbursement to the cities of the 'lost' revenue - just like the legislature has done when it 'eliminated' a portion of the cost of a car tag - something they have printed on your tag receipt (the legislative tax credit) - and reimbursed the counties for the money they would have received."

Is this a record for a run-on sentence?

Anonymous said...

Just yesterday at Kroger I saw a single serving size bag of potato chips for $5.49 each. That's ridiculous for a handful of tater chips.

Anonymous said...

"The cities would not be hurt by a reduction in the grocery sales tax, should it actually happen."

Really? Tell that to all the forecasters who have developed models showing the converse to be true.

According to your (inaccurate) suggestion, since the cities would not be HURT by its elimination, then they aren't HELPED by its existence in the first place. Riddle us that, Joker.

Anonymous said...

Kingfish said...
So what exactly are cities supposed to do with the loss of revenue? Especially since they are all getting hit with a PERS rate hike next year.
....................
Tell us then, Mr. Soothsayer - Will the increase in contribution requirement cause municipalities (and others) all over the state to drastically cut PERS contributing employees and replace them with contract workers or temps?

Anonymous said...

7:20, no just cut PERS employees, cut services and raise tax rates.

Anonymous said...

When has Sid ever let facts (such as no sales tax on EBT) get in the way of building a narrative?

Bill and Sid hurt the credibility of JJ. Bring back James Tulp and Bigger Pie Kelly. Bill and Sid are terrible.

Anonymous said...

Another exercise in maximum verbosity by Sid.
Getting paid by the word has to be a great gig. Quote some stats, make a few wild assumptions, and hit send…

Anonymous said...

Typically, the only grocery store in any small Delta town survives on SNAP shoppers.


AskUSDA
U.S. DEPARTMENT OF AGRICULTURE

Have a Question?
AskUSDA

We’re here to help you find what you’re looking for.

Can sales tax be charged on items I bought with Supplemental Nutrition Assistance Program benefits?
Oct 6, 2022

KNOWLEDGE ARTICLE
No, retailers cannot charge sales tax on purchases made with Supplemental Nutrition Assistance Program (SNAP) benefits.


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.