Lawmakers look at taxing groceries (Iowa)

[Blue Gardener]

"Many Iowans would pay sales tax on groceries, but no longer be taxed on corporate and pension income, under a proposal to overhaul the state's taxing structure unveiled Thursday by a state Republican senator.

A sweeping proposal by Sen. David Miller of Fairfield could raise an extra $300 million a year in tax revenues and make sweeping changes to every aspect of the state's taxing structure.

Miller, a member of the Senate's tax-writing committee, called for slashing most of the state's exemptions on sales tax, including such purchases as food, expanding the tax base by $1 billion. He also would eliminate taxes on corporate and pension incomes, overhaul the property tax structure, and commit millions more state dollars to schools and mental health care."

http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20050211/NEWS10/502110440/1011

This can't be good for low income people. Iowa has a large elderly population, and they really can't afford more sales tax.
There is quite a bit more detail in the article.

[oneighty]

1. Regression

Tax the poor give to the rich. The Republican right wing way. Will center of the road Republicans ever just say no to this rape the poor thinking?

180

[China_cat]

2. I live in South Carolina

where we pay sales tax on food...and medicine and everything else. We get no breaks. (Hell, we even have to pay tax on our cars every year)

Don't count on it being used to relieve any other tax. We heard that about the last half cent they wanted. We learned afterward that it's going to pay for the roads into 2 of the new WalMarts.

Yes, this makes it really hard to buy food. I don't know what your sales tax is but it adds an extra 6 1/2 cents on every dollar we spend here. So we have to figure that while planning our budget. And that's with being used to it. I pity anyone not used to it getting to the checkout counter and finding that they just don't have enough money to pay the bill.

[Blue Gardener]

4. Right now it is at least 5%

But many areas have voted for the local option sales tax to add another penny for special projects. The Cedar Rapids area had the extra penny for awhile to upgrade all the city swimming pools, which actually turned out pretty well. I doubt the local option tax will have much chance of being voted in for these kinds of projects if groceries are going to be taxed. I hope they take that into consideration.

[Chipper Chat]

3. What the.. Seniors now have to choose between food & medicine

to make ends meet. Now they would have to choose between less food or less medicine. But to be fair, I guess it IS important for that fat CEO to have the money to remodel his condo in Aspen! After all, this is 'amurka.

[pstans]

5. Horrible idea

I hope this gets some pub cause it is so stupid and wrong for Iowa. If the Democrats have a strong voice and point out all of the bad things about this then more and more people will see that the Republicans do not have the best interests of the everyday American on their mind.

[rurallib]

6. Why not tax internet purchases?

I have never understood why that cannot or is not done. It is like the local store owner has to add on a penalty for you coming to his store.

[CornField]

11. It would hurt Iowa businesses that use the net

Iowa cannot tell other states what they can do, it can only tell its own businesses what they can (or can't) do.

So, if the state legislature required all Iowa businesses to collect sales tax on all internet sales, our businesses would suffer. (Why pay extra when they can look up a business in Missouri or Texas or where ever and not pay tax? One of the benefits of running an internet business here in Iowa is the low overhead cost which, in turn, allows for lower prices.

[progressoid]

7. Looks like dems and repubs aren't too crazy about his ideas

Write your local legislators and make your voice heard!!

http://www4.legis.state.ia.us/aspx/Internet/Legislators/LegislatorInfo.aspx

[Rambis]

8. when are these dumb son of a bithces gonna realize...

When you cut taxes to the bone you gotta get the money you use from somewhere! The bills we have to pay to run a society aren't going away they are just shifting burdons to come up with the cash we "SAVE" on taxes. WTF! is the next hair brained scheme the pugs are gonna come up with. How about people that have lived her 30 years and make less than 50,000$ pay OOOOOOOOOOOOOOOOOOOO in taxes. Let's get Jim Hahn to put his mind to work on this one for us. Well, maybe not-

[rurallib]

9. Jim Hahn and Mind

two words seldom seen together.

[HuskiesHowls]

10. I like how he says the tax system is archaic and outdated....

because it hasn't been all that long ago that they DROPPED the sales tax on groceries!!!

And he wants to give a free ride to all the corporations (more than likely incorporated in Delaware).

I think I'll go out and incorporate myself!!!!