Monday, February 19, 2007

Food sales TAX CUT close to revenue neutral?


Stennis Institute researcher Judith Phillips says if the grocery tax is reduced, low-income people could be expected to use the tax savings to buy more groceries, and that would have little impact on state revenues.

She says middle- and upper-income people would be likely to spend the extra money on taxable items. That would generate about 18 (M) million dollars in new sales tax collections -- and part of the new money would go to cities.

HERE is a link to the Report