How Much the Grocery Tax Bill Could’ve Saved You
Governor Butch Otter opted to veto a bill that would've eliminated sales tax on groceries in Idaho.
How much money are we missing out on?
First thing's first. Why did the governor decide to veto the bill? He says:
Every Idaho citizen should know by now that I support tax relief. In fact, I have approved about $1 billion in tax relief since I took office in 2007. However, the costs of this particular proposal are too high and the potential for imminent financial need too great for the small amount of tax relief it would provide."
Now I'm not here to say if it was right or wrong of the governor to veto the bill. I know we need to pay taxes, and that money goes toward all kinds of things. But, how much money would we have saved if groceries were tax-free in Idaho? Let's do the math.
According to USA Today, the average American family of four was spending approximately $289 per week on groceries. This study was done in 2013, so the number is most likely higher now. $289 a week times 52 weeks a year is $15,028 dollars. Idaho's current sales tax is 6%. So on $15,028, you're spending an additional $901.68 in taxes.
You read that right. If groceries were tax-free in Idaho, you'd save almost $1,000 a year. That hurts.