Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

haele

(15,379 posts)
40. The wealthy are going to call their kitchens a "catering operation" and get a bigger tax break.
Sat May 25, 2013, 06:17 PM
May 2013

Seriously, do you think that people making half-a-million dollars a year won't have their cook/caterers stock their kitchens and then write it off as a business expense?
I know people in that income range in Texas who do that very thing. Even though they only have a cook come in once and a while for special events, that cook would come in and do their pantry shopping so they could write those groceries off. Since they pay the cook and provide a work area for the cook, they get a full rebate on the tax the cook paid on the food.
Perfectly legal.

And giving big tax cuts to people making over $40K? What big tax breaks do most of those people have under a state income tax?

I make over $40K in an income-tax state (with no food credits) and get nothing but my standard household exemptions and a renter's credit, so I'm still paying the state a lot more than someone living on the margins get. (That renter's credit is not a "tax cut" as I explained above - it's the same as a mortgage deduction for the person who owns the house I rent.) I don't even get an education credit from the state for going to school to get a degree.

I could be making $100K a year (I have co-workers who do so) and also get nothing but my standard household exemptions and the ability to itemize my deductions, unless I made enough to start putting some of that money into retirement investments. (hint, I don't make enough to do more than live paycheck to paycheck)

In states where there is an income tax base for the majority of the revenue, there is no revenue
I'll tell you what I'd do, if I was lived in a sales-tax only state and made between $41K and $60K - I'd be eating out a whole lot more at the big chains - where they don't worry about paying taxes on their groceries, or can write it off as a business deduction, and usually have all sorts of benefits just to be located in that state.
That's what they do in Washington State. That's what they do in Texas. That's what I've seen them do in Florida.
I'd be paying less tax on my food that way - and the state would get less money. Washington State has that problem - and the problem going to a less regressive, more equitable way of collecting revenue is that there are too many $60K + people who want to "have as much of their paycheck as they can" where they can write off all the federal taxes they can and still cheat the state - and f** those who have to pinch pennies weekly just to have enough to eat. After all; those people can get food stamps or go to the food pantry if they don't make enough for food stamps...
While here in California, with only a tax on processed foods, it's cheaper to buy groceries and cook your own food at home. Also healthier and that's better for the state in the long run.

That's why a sales tax on groceries is regressive. People who are living on the margins are forced to pay into the system every time they want to have food at home, while people who aren't have lots of options to cheat the state out of those sales tax revenues.

The vision that supports a sales tax on food/staples is too narrow; heck, having a sales tax/user fee way of collecting revenue is too narrow - you're still giving the few wealthy too much of a tax cut in terms of revenue they provide, and the majority population - the poor and working people are still the ones that are providing the day-to-day higher percentage of their income supporting the state.
I don't care about a "rebate" once a year.
From long experience getting "tax rebates", that amount is not much and unless it's presented as a food-only "credit card", it will not go to help pay for groceries the rest of the next year. Maybe it will go to groceries for the month the rebate is given, but that's about it - and people can't just turn off their lives between paychecks.

Haele

Recommendations

0 members have recommended this reply (displayed in chronological order):

Stupidity reigns. PDJane May 2013 #1
Reducing the sales-tax of chairs will cause people to sit more. DetlefK May 2013 #2
Household budgets are so tight in Kansas... htuttle May 2013 #3
Or extra Bling for our yachts BuelahWitch May 2013 #5
A conservative in favor of higher taxes? Capt. Obvious May 2013 #4
That would be laughable but the moron is serious liberal N proud May 2013 #6
I would oppose this as well hfojvt May 2013 #7
you get a food sales tax rebate? how do i get one? eom ellenfl May 2013 #10
I believe they did away with it this year. proud2BlibKansan May 2013 #14
A rebate? Is that an "end of the year if you file taxes" type rebate like our renter's in CA? haele May 2013 #13
Yes. End of the year on your tax refund. proud2BlibKansan May 2013 #15
you don't have to keep receipts hfojvt May 2013 #22
I'm sorry but taxing food is regressive and it is unthinkable. CTyankee May 2013 #16
it's not regressive with the rebate hfojvt May 2013 #21
soyou are saying the tax rebate is redistributive in its effect? CTyankee May 2013 #23
this is Kansas hfojvt May 2013 #24
You'd think that the people would rise up in rage against such a set up. CTyankee May 2013 #32
It might "give more benefit" to the higher incomes, but if you only have twenty dollars left - haele May 2013 #38
the sales tax is "only" 6.2% hfojvt May 2013 #39
The wealthy are going to call their kitchens a "catering operation" and get a bigger tax break. haele May 2013 #40
A rebate doesnt help those who cant afford the price increase to being with. bunnies May 2013 #25
after one year - it does hfojvt May 2013 #29
Thanks for spelling it out for me. bunnies May 2013 #35
madness is the only explanation. HiPointDem May 2013 #8
*insert lame "300" joke here* sakabatou May 2013 #12
but denying ex-felons food stamps isn't ;) Johonny May 2013 #9
you'd think they'd eventually run out of morans. eom ellenfl May 2013 #11
I'm amazed at this guy's sheer stupidity Socialistlemur May 2013 #17
Well LORD KNOWS we don't need healthy babies! Rex May 2013 #18
Food is soshulist. KamaAina May 2013 #19
What's the Matter With Kansas? etherealtruth May 2013 #20
Food taxes are regressive. Of course a Republican supports them. nt Pragdem May 2013 #26
Is there sales tax on food in other states?? Malone May 2013 #27
Yes I've always had to pay sales tax on food proud2BlibKansan May 2013 #28
"Sales taxes in the United States" WorseBeforeBetter May 2013 #34
No sales tax on clothes induces consumers to wear cashmere sweaters on hot summer days. TheOther95Percent May 2013 #30
So true. bunnies May 2013 #36
LOL! TheOther95Percent May 2013 #37
I've heard this meme before didnt a senator from kentuky say he wanted to abolish Drew Richards May 2013 #31
A sales tax on food is unconscionable, even with a "rebate" for the poor. hunter May 2013 #33
Latest Discussions»General Discussion»Kansas senator says reduc...»Reply #40