Adam Looney: Utah legislators shouldn’t eliminate the sales tax on food

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Adam Looney: Utah legislators shouldn’t eliminate the sales tax on food
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Adam Looney: 'A better approach is to provide low-income families an income tax credit proportionate to what they pay in sales taxes.'

Representatives Judy Weeks Rohner, R-West Valley City and Rosemary Lesser, D-Ogden, hold a news conference on the steps of the Utah Capitol on Tuesday, Feb. 1, 2022, to bring attention to legislation they are bringing forward aimed at eliminating the state’s portion of the sales tax on food.Utah lawmakers are considering legislation to eliminate the 1.75% state sales tax on food out of a concern that its burden falls disproportionately on poor households.

One lesson from these data is that the problems poor households face aren’t narrowly about food or food taxes. Low-income families struggle to pay for a wide variety of necessities, and state sales, property and excise taxes add to their financial burden. In this context, a family’s total consumption provides a more accurate measure of their financial resources and how much they spend on food. Measured this way, low-income families spend a more similar fraction of their budget on food as the highest income families . Poor people spend a lot of their budget on food because they have little income. But rich people spend a lot on food, too, because they buy more expensive items.

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