Life, Liberty, Politics and Policy in the Land of Enchantment!
Much Ado About Little: The Debate Over the Grocery Tax
Today, my friends (and occasional allies) Fred Nathan of Think New Mexico and Allen Sanchez with the Catholic Church wrote an article in the Albuquerque Journal decrying efforts by the Albuquerque Chamber to convince politicians in Santa Fe to oppose re-instating the tax on groceries that was abolished a few years ago. While the Rio Grande Foundation opposed repeal of the GRT on food when it was actually done because it was bad economic policy, the current situation is a bit different. After all, we're stuck with the higher GRT burden of 0.5% and we may lose the benefit of tax-free grocery sales.
By the way, lest you think dear reader, that the Rio Grande Foundation was being "anti-poor" in opposing elimination of the GRT on food, I'll point you to this from the left-wing New Mexico Voices for Children outlining their opposition to the tax switch.
But my real beef here is not with Fred Nathan and Allen Sanchez, rather, it is with the folks at the Albuquerque Chamber who are pushing for restoration of the grocery tax in lieu of other taxes. Now, they are right in that the grocery tax is less economically-harmful than some other tax hike proposals on the table, but that is missing the forest for the trees.
The Albuquerque Chamber (and all other business groups in this state) should remain opposed to ANY TAX HIKE on principle. There is ample room for budget cuts and, as I outlined here, there are ample innovative opportunities for spending reductions. At the very least, The Chamber should push for real budget cuts that are equivalent to any "revenue enhancements." Unfortunately, they have already given away the store, so now it is all about deciding whose ox is gored.
So, in essence, the battle over the grocery tax is of minor import. Eliminating the tax had negligible impact on the poor and re-instating it is not going to be the end of the world either. What is damaging is business groups happily opening the flood gates to higher taxes.
By the way, lest you think dear reader, that the Rio Grande Foundation was being "anti-poor" in opposing elimination of the GRT on food, I'll point you to this from the left-wing New Mexico Voices for Children outlining their opposition to the tax switch.
But my real beef here is not with Fred Nathan and Allen Sanchez, rather, it is with the folks at the Albuquerque Chamber who are pushing for restoration of the grocery tax in lieu of other taxes. Now, they are right in that the grocery tax is less economically-harmful than some other tax hike proposals on the table, but that is missing the forest for the trees.
The Albuquerque Chamber (and all other business groups in this state) should remain opposed to ANY TAX HIKE on principle. There is ample room for budget cuts and, as I outlined here, there are ample innovative opportunities for spending reductions. At the very least, The Chamber should push for real budget cuts that are equivalent to any "revenue enhancements." Unfortunately, they have already given away the store, so now it is all about deciding whose ox is gored.
So, in essence, the battle over the grocery tax is of minor import. Eliminating the tax had negligible impact on the poor and re-instating it is not going to be the end of the world either. What is damaging is business groups happily opening the flood gates to higher taxes.
Views: 7
Replies to This Discussion
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Permalink Reply by Mike Blessing on -
The Albuquerque Chamber (and all other business groups in this state) should remain opposed to ANY TAX HIKE on principle.
Just as the Rio Grande Foundation should support ANY TAX CUT on principle.
I swear, if I catch any LPNM members opposing a tax cut, especially a popular one like this, I'm going to publicly recommend that they visit 1301 San Pedro NE and sign up with the bunch headquartered there.
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Permalink Reply by Paul Gessing on -
Just for the record, Mike, elimination of the grocery tax was NOT a tax cut. It was a tax swap. The GRT was raised 0.5% to "pay for" the grocery tax elimination. Were it a straight tax cut, we'd have jumped on board for sure.
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Permalink Reply by Mike Blessing on
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I see -- Brown didn't mention that aspect in the article you linked to above.
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Permalink Reply by Thomas Molitor on -
> The food tax is a regressive, anti-family tax on necessities, while a tax on junk food makes sense for a state struggling with an obesity epidemic. Please urge Richardson and legislators to tax junk food, not fruit, vegetables and baby food.<
I agree with Paul: stop with the taxes. Fred Nathan is correct in saying New Mexico has an obesity epidemic: its a fat government fed by taxpayers. I can see the newly appointed committee being formed as we speak of (better be slim) public employees spending time creating an Excel file of what "is and isn't considered junk food." What about a tax on "junk journalism?" Would Geraldo Rivera garner a higher tax rate than Seymour Hersh? Just wondering.
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Permalink Reply by Amy H on -
I am wondering if anyone knows where i can go/write to or call to voice my concerns over the grocery tax? Seeing as how I can barely afford groceries for my family now, I can't imagine what we will do when we have to start factoring in taxes. Thanks
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Permalink Reply by Paul Gessing on
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Amy, you can find out who your legislators are here: http://www.nmlegis.gov/lcs/legislatorsearch.aspx
You can email them or call them.
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