Grocery Taxes Cut Proposed in Arkansas and Other States

Arkansas Moves to End Tax

Arkansas Governor Sarah Huckabee Sanders is working to end the last part of the state’s grocery taxes. She wants to remove the remaining 1/8th of a cent sales tax on grocery. The plan was announced Tuesday.

More States Join the Fight

Arkansas is not alone. Tennessee, Mississippi, and Alabama are also looking to lower or remove grocery taxes. Lawmakers say families need relief. Food prices are rising fast.

High Grocery Costs Hurt Families

People are struggling. The cost of eggs, milk, and bread keeps going up. Many families can barely afford basic food. Cutting it would help working people.

Federal Budget Cuts Bring Concerns

Some states worry about losing money from these tax cuts. There are concerns about federal budget cuts. Medicaid and other programs could lose funding. But leaders say families need help now.

States That Have Already Cut Taxes

Several states have already removed it. Oklahoma and Kansas ended them last year. Virginia removed its tax in 2023. Illinois will eliminate its 1% grocery tax next year.

States That Still Tax Groceries

Nine states still have sales tax on groceries. These states include Arkansas, Hawaii, Idaho, Illinois, Mississippi, Missouri, South Dakota, Tennessee, and Utah. Some states offer tax credits to help low-income residents.

Tennessee’s also has Debate

Tennessee’s sales tax on groceries is 4%. Democrats have tried to remove it for years. They failed. Now, Republican lawmakers want to cut it too. But Governor Bill Lee has not included it in his budget plan.

Alabama Wants to Lower as well

Alabama recently cut its from 4% to 2%. Now, lawmakers want to remove the remaining 2%. Democrats say this tax hurts families.

Mississippi and South Dakota’s Decisions

Mississippi lawmakers are reviewing a plan to lower the 7%. But last year, South Dakota voters rejected a cut.

History of Grocery Tax in Arkansas

Arkansas has worked for years to reduce it. Democratic Governor Mike Beebe and Republican Governor Asa Hutchinson both cut the tax. Now, Sanders wants to finish the job.

The Cost of Cutting Grocery Taxes

If Arkansas removes the last grocery tax, the state will lose $11 million per year. Sanders says Arkansas can handle the loss.

Other Ways to Help Families

Experts say cuts are good, but other ideas could help too. Some suggest childcare credits or earned income tax credits. These target working families directly.

Final Thoughts

People need help. Grocery prices are too high. Removing sales taxes on food could help families. Arkansas and other states must act fast to ease the burden.