Food-tax bite

The debate over how best to use projected budget surpluses is moving from Capitol Hill to the local grocery store.

Analysts are looking into sales-tax exemption for food in 18 states in order to furnish cost savings for low-income families.

"Lower-income people pay a much higher percentage [of their earnings] on food, and so in states with a sales tax, they pay a higher proportion," says Nicholas Johnson, an analyst with the Center for Policy Alternatives.

The food tax accounts for 15 percent of states' sales tax revenue. Currently, 27 states offer tax exemptions for food items, and five states have no sales tax at all.

Source: American News Service

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