Wednesday, February 03, 2010

Phoenix City Council Approves Two Percent (2%) Sales Tax on Food and Grocery Items

Now that the local governments have spent all the monies in the respective treasury departments, these same local governments will need to squeeze additional monies from the people in order to keep the bloated governments afloat. Case in point, the city council in Phoenix, Arizona recently approved a 2% sales tax hike on all foods. In a recession/depression, poor people will be affected the most by this tax increase. Every household will be required to increase its food budget by 2% and in these times, that is not possible for many families. Why can't the government ever retract instead of further milking people with taxes?

Desperate to save police, fire and other city jobs, a divided Phoenix City Council on Tuesday approved a sales tax on grocery items that will generate tens of millions of dollars a year.

The 2 percent food tax will take effect April 1 and expire after five years, though Mayor Phil Gordon said the council has the option of reversing its decision after it hears from the public during 15 budget hearings planned for this month.

The tax on milk, meat, vegetables and other food purchased by shoppers will generate an estimated $12.5 million for the fiscal year that ends June 30. It will raise another $50 million for fiscal 2011. Food purchased with food stamps will not be taxed.


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