MEMPHIS, Tennessee — In Monday’s Ransom Note: a new proposal from Tennessee Governor Bill Lee, one that would give all of us a break from paying sales tax on our groceries or when we eat out. We'd get the tax break for two weeks. The cost would be $100 million, which Governor Lee says we can afford thanks to a $400 million unexpected budget surplus.
We all need to feed our families, so a sales tax on food disproportionately hurts the poor. It is the definition of a regressive tax. That's why 37 states don't have any sales tax on groceries. At least Tennessee has lowered its sales tax on groceries to 4%. Folks in Mississippi have it even worse. One of just three states that'll charge you the same sales tax on food, 7%, as it does everything else. For Arkansans the tax is almost nothing, just .125%.
I hope the Tennessee lawmakers approve the two-week tax break, but they need to make it permanent. Join the conversation by email (rransom@localmemphis.com), Facebook, or Twitter.