food tax

HB1131 voted down this morning (Food Tax shift)

This comes as no surprise to me (From my email box);

Advocates,

Unfortunately HB1131, to shift tax off food, was voted down in House Taxation Committee this morning.

You can thank the supporters: Rep’s Feickert, Feinstein (bill sponsor), Kirschman, and Bernie Hunhoff

Voting against the bill: Conzet, Greenfield, Kirkeby, Liss, Moser, Perry, Rozum, Russell, Solum, Wick, Willadson.  (Last year Kirkeby voted for a similar bill.)

Listen to the whole committee hearing by going to:

http://legis.state.sd.us/sessions/2011/CommitteeMinutes.aspx?Committee=24&File=minHTA01270745.htm#2040

Click on the SDPB symbol at the top over the date 1/27, and scroll half way through the session because this bill came up about half way through.

There was an excellent body of testimony by Rep Feinstein, Greg Boris of Voices for Children, Matt Gassen (director of Feeding South Dakota, our food bank network), Pastor Karl Kroger, Joy Smolnisky of South Dakota Budget and Policy Project, and Kristin Ashenbrenner of SD Advocacy Network for Women. Also weighing in were Luke Temple of Dakota Rural Action and Senator Billie Sutton of District 26.

The opponents were Jim Terwilliger from SD Bureau of Finance & Mgt, David Owen of the Chamber of Commerce, and Ron Olinger of SD Retailers.

Comments of the legislators before the vote were very interesting:

Conzet and Wick said the refund program needs to do more educating. (It should be noted that people have tried over 7 years, which should be enough evidence that such programs do not work.)

Moser said the people who come to his church for help in Yankton are asking for help with rent, medical, and utilities, not food, and there are enough programs helping with food.

Liss said this bill “sets up a financial incentive to obesity”

B. Hunhoff, a supporter, said this will happen someday. Why not today? It’s a good moral step to help working families and the elderly.

The bill was “deferred to the 41st day”. That is how they kill a bill, because there are only 40 days in the session. We always say nothing is over ’til the final gavel sounds, but this vote seems fairly decisive, esp. given the party-line nature of the vote, unlike last year.

Nevertheless, legislators need to understand that South Dakotans really do not like this tax. The publicity against the 2004 ballot initiative had claimed it would cause an income tax and schools closing and snow not being plowed. It said the refund program would solve the problem. Seven years later, legislators should not be able to hide behind a failed, inherently ineffective refund program.

Many thanks to everyone who made contacts on this so far. This bill’s loss does not stop the cause, which goes on, toward making South Dakota a fairer state where all people can thrive.

The Advocacy Project

While I support eliminating the food tax, I think lobbying our State Legislature is a waste of time. Get a big time donor and put it on the ballot. It will pass this time.

BTW, Brian, why did you vote against this?

Another ‘Crash & Burn’ food tax elimination proposal? Maybe we should have a barbie?

Don’t get me wrong, I have always felt that a tax on (essential) food is immoral, idiotic and pretty much insensitive and unfair to the poor, and everybody for that matter. It’s kinda like health insurance. No one should be benefitting from essential goods and services to sustain life. But I also have the feeling that it will fail, again;

SIOUX FALLS, SD – You could be paying less at the grocery store if one South Dakota lawmaker has his way. For the second time in as many years Sioux Falls Representative Marc Feinstein plans to propose cutting the state tax on groceries. Feinstein says constituents have told him how difficult it can be to make ends meet.

And Marc’s idea has merit;

The major difference in this bill replaces the lost four percent grocery tax revenue by adding .35 percent to all other taxable goods.

But Marc, don’t you know that means the rich would have to pay more in taxes for all of their luxury items? Why not just continue to tax the shit out of the working poor who we fuck over on a daily basis in an almost non-existant worker rights state?

While I will give props to Marc for trying a different approach, business owner ran Pierre will have no part of it – off with their heads!

HB 1255 Passes Committee (ending the food tax)

UPDATE: More Games

After such a nice victory in Taxation Committee this morning, a move led by Rep.Faehn in the House this afternoon has now sent HB1255 to Appropriations Committee on Monday morning for its next vote, rather than the full House. So here we go. Your contacts were  wonderful to the last committee. Let’s convince this one too! The people need this tax shift.

If you need any further inspiration, read this from Matt Gassen, Director of Community Food Banks of SD (which distributes food to over 500 agencies in SD)
“No other tax so directly takes food off the family table as the current 4% state tax on food items. To shift the tax off food as proposed in HB 1255 could be one of the single most significant pieces of legislation to impact the hungry of South Dakota in a long time. With the continuing increase in the numbers of individuals (78,000 statewide) seeking emergency food assistance a recent study shows that 32% choose between buying groceries and paying for utilities or heating fuel, 29% choose between food and rent/mortgages and 32% choose between food and gas for their cars. The passage of this bill would make the family budget go farther and increase the amount of food that their grocery dollars would buy. It could also help to ease the strain on emergency feeding programs who are struggling to find enough food to help all those in need.”

Next to house floor – needs 2/3 vote

HB1255 is a revenue-neutral tax shift. The state comes out even with the shift from the 4% state portion of food tax to  3/10% on non-food sales. It is revenue-neutral for the state, but middle- and lower-income people will be better able to afford their basic needs. Better than refund programs. The benefit comes right at the grocery store, to reduce hunger, and improve health and family financial stability.

What about the argument that taxing food provides the state a “stable source of revenue”? This is a line of reasoning from a time when the economy was better, and the worry was  that when times get tough, at least there would be revenue coming from grocery purchases. Well, times are tough. This is the down time. Making a revenue-neutral tax shift when the economy is down would take the worry out of taking tax off food. This is the time to make the shift. The issue will continue until the tax comes off food, so legislators would be wise to do it now. (Does this make sense? There should be a more concise way to explain it.)

A Shocking 48% increase in Food Stamp usage in Minnehaha County in one year

Souf_R_C_-49027

For those who think Sioux Falls is sheltered from the recession, check out these numbers (Bread for the World)

• SD food stamp enrollment saw an incredible one-year increase from Sept.’08 to Sept.’09: 34% !!

Food stamps traditionally go up and down with the economy. But no one envisioned such a huge one-year increase.

(The Food Stamp program is now called SNAP.)
Find the data for your county here:

http://dss.sd.gov/foodstamps/data/foodstampdatapast/index.asp

Minnehaha County residents will be completely shocked by their 48% increase.

Let your local Social Services workers know you appreciate them. They are working hard.

One more note: Even if you include up to 4,000 households using commodities rather than food stamps (option available on reservations), there are still thousands of eligible low-income households NOT signed up for food stamps, easily 15,000 to 20,000 or more. The state should campaign for them to sign up. (It’s all federal funds.)


• Food tax refunds’ dismal reach:
less than 1% of SD’s low-income population.

Only 630 households in the whole state are receiving the quarterly food tax refunds. Make sure your local media report this.

Why is it important?

• People pay a lot of money for the tax. Every year the money families pay in food tax would cover meals for 3 weeks.

• There is a movement afoot to raise sales tax for new city projects, even tho’ cities have other ways to raise funds. In an attempt to make this palatable, the draft of the state legislation says cities may refund the new tax to their low-income residents. So far, there is no effective way to do refunds. Such refund programs are inherently ineffective. People need to know, so they don’t think this option would solve the problem of a higher sales tax, and the resulting higher the cost of living.