Over the last few legislative sessions, numerous states have enacted laws preventing localities from adopting taxes on groceries or on specific grocery items. These actions ensure that consumers have a consistent level of food taxation across their state, rather than a patchwork of taxes depending on the city or county. Now voters in Washington state and Oregon will also have the opportunity to decide whether cities and counties in their respective states should be permitted to impose arbitrary taxes on groceries. Due to the serious negative consequences to consumers, businesses, and taxpayers in areas that have such taxes, voters should swifty support these important ballot measures.
Arbitrary taxes on specific grocery items are a perfect example of misguided policies that needlessly harm the most vulnerable of our society. Simply put, these taxes are regressive in nature, meaning that when this kind of tax is placed on foods or beverages, the newly added cost takes a disproportionately large bite out of lower-income consumers’ wallets compared to wealthier individuals, which makes these types of taxes regressive. As a result, grocery taxes make it harder, not easier, for those with limited means to put food on the table for themselves and their families.
Additionally, one of the most important principles for sound tax policy is that taxes be neutral, meaning the tax code should be fair and not choose winners and losers. Politicians should not use taxes to penalize consumers for enjoying certain products. However, as we have seen across the country, local elected officials have done just that and have used taxes as a weapon to influence consumer behavior. They will often tax items arbitrarily determined as “bad” in an attempt to transition consumers to different products.
Some of these localities have discriminately gone after sweetened beverages and there is little stopping local politicians from taxing any product they choose - which could change by the day. That means they could target meat products, cheese, frozen dinners, or anything else for being “unhealthy” or “not environmentally friendly.” Taxpayers and consumers must push back against these officials who at any moment could decide what is bad and what isn’t. To better do so, taxpayers and consumers need these two important taxpayer guardrail initiatives in Washington and Oregon.
In Washington, voters will decide on Initiative 1634, which, if approved, would prohibit localities from placing any new tax or fee on grocery items. This measure, however, would not prevent the state from enacting a statewide tax, and would not impact current grocery taxes already enacted by local governments.
In Oregon, the proposal is Measure 103, which, if approved, would amend the Oregon constitution to prohibit the state government, as well as local governments from placing a tax on the sale or distribution of groceries.
Advocates for grocery taxes are slowly realizing that these types of taxes are ineffective and place an unnecessary burden on lower-income people. Should voters approve these taxpayer protection ballot measures, it would completely take the prospect of local lawmakers from raising taxes on food items, something all taxpayers should support.