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Taxing Problem
James Dudlicek
Editor
(847) 405-4009
I hate the idea of an extra “snack tax” on so-called junk food. But what about a tax break on healthier food items?
Minnesota legislators are looking to exempt milk,
yogurt and other better-for-you items sold in vending machines from the
state’s 6.5 percent sales tax. Food and food ingredients are already
exempted from sales tax in the Land of 10,000 Lakes, but not so restaurant
food, deemed a luxury.
The vending industry challenged the apparent inequity
all the way to the Minnesota Supreme Court, which upheld the policy based
on the notion that vending machines are more like restaurants than grocery
stores. The state’s dairy industry likewise has tried to get milk
exempted from the tax.
But a new effort to reward “healthy
behavior” has a vending tax exemption on an apparent fast track in
Minnesota. While it would cost the state about $1.3 million in annual
revenues, the measure’s supporters reportedly say it would give
vending machine operators an incentive to devote more space to fresh food
and net more money for schools that share vending profits.
Minnesota is one of 10 states where sales taxes apply
in vending to food that would otherwise be tax-exempt.
With opportunities for dairy vending sales continuing
to expand, Minnesota’s plan is a good one and, with luck, those other
states will follow suit. A good next move would be for the 40 remaining
states to exempt food — a staple of life — from sales taxes to
help make better nutrition less burdensome for all.
You may ask, why not just exempt healthy foods from
sales taxes, in retail or vending? Well, who gets to decide what’s
“healthy”?
Case in point: Junk food ads are banned during
kids’ TV shows in Britain, but under the standards used, cheese is
considered junk food (breast milk reportedly would be, too). Of course, now
the animal rights fringe (which probably hates the Minnesota plan) wants to
do that here, sending out press releases noting that cheese has more
saturated fat than a candy bar. Well, show me the candy bar that has more
calcium and protein than cheese, and then maybe we’ll talk.
What’s needed is more realistic standards for
defining “healthy.” Not just calories, not just fat, not just
salt — a complete, balanced nutritional package that takes wellness
and — oh, God, yes — taste into consideration.
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