GOP blocks Democratic proposal to eliminate tax on food

For immediate release: Tuesday, Oct. 25, 2005

CONTACT: John Kohlstrand (614) 466-9036 or (614) 595-4936

GOP blocks Democratic proposal to eliminate tax on food

 House Democratic Leader Chris Redfern expressed disappointment that a proposal to eliminate the new state tax on food was blocked today by the House GOP.

 Redfern’s proposal would have exempted the sales of food from the GOP’s new consumer activity tax (CAT). The proposal – tabled on a largely party-line vote – would have saved consumers $61 million during the 2006-07 fiscal year.

 Since 1936, the Ohio Constitution has prohibited the taxation of food for consumption off premises – a ban reaffirmed by a vote of Ohio citizens in 1976 and again in 1994.

 Yet Republicans’ new CAT tax will be imposed on sales during each phase of the food production chain on its way to consumer. Moreover, retailers are prohibited by law from disclosing the amount of the CAT tax they are passing on to consumers.

 “Food is a basic human need. Ohioans have said again and again that taxing food is just morally wrong,” Redfern said. “This new food tax is an end run around the Ohio constitution.”

 The new CAT tax was included in last June’s two-year operating budget, which passed the House largely along party lines. Redfern’s proposal to exempt food came in the form of a floor amendment today to House Bill 142.

 Representative Michael Skindell, D-Lakewood, is developing legislation that would exempt food sold for consumption off premises from the CAT tax. House Democrats have identified eliminating of the CAT tax on food as an important fall priority.

 “This new tax on food is yet another insidious burden for working families and senior citizens who are just getting by on fixed incomes,” Redfern said. “This tax is one more example of state government shifting the burden away from big corporations and onto the little guy.”