Reinstating the Food Tax Is a Must to Fill in Utah's Budget Gap

Summary

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Good tax policy requires broadening the base, narrowing the exemptions, enhancing revenue stability and increasing simplicity of application and collection. We violated all of these objectives two years ago when we cut the food tax in half and adopted a two-tiered rate with complex distinctions and reduced stability.

The Retail Merchants recently told the Tax Review Commission that they oppose any change other than complete elimination or full reinstatement. They rightly want out of any game in which this tax is a "political football."

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Reinstating the Food Tax Is a Must to Fill in Utah's Budget Gap

The two-year-old promise of elimination was impractical and doomed from the start. Local governments, especially in rural Utah, are highly dependent upon the food tax. Take it away fr...

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