By Bruce Kettelle
There is a solution to Ohio’s budget crisis without invoking slot machines or draconian cuts to necessary services such as libraries. The solution even provides an upside response to the state’s recent revelation that it is in the top ten for obesity.
The answer is a revision to the sales tax code that would bring the state in step with all of its neighbors and most of the country. The revenues from taxing food to go could even be great enough to allow for a slight reduction in the other revenue generators such as the state’s income tax.
The National Restaurant Association estimates Ohio restaurants will gross $16 billion this year. If half of that is food to go it would translate into $440 million in sales taxes. Not included in that estimate is prepared food sold at non-traditional restaurants such as convenience stores.
No politician likes to be the one to suggest raising a specific tax but these are trying times for physical and fiscal health in the state. Making fast food a little more expensive can help raise the awareness of one of the problems leading to obesity and its resulting increase on healthcare costs.
No stone should be left unturned in Columbus this week as the debate over the state’s budget reaches a crescendo. The echoing refrain in the State Capital halls for a sales tax on prepared food to go should be given much deserved public discussion and consideration.
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When mid scale restaurants are losing customers and many closing High end restaurants seeing the largest number of decline in unit’s decades? It may not be the time for such a tax. Grocery stores and convenience stores are converting from deep fried fatty foods to a better for you fresh prepared formant this action could derail the success of this trend to Grocerant style products. Ready to eat and ready to heat foods to-go are a growing niche. Stifling this niche now would be a huge mistake.
ReplyDeleteGrocerant - I agree there are more healthy food to go alternatives being added but for the most part they are processed fried foods. Do you really believe an extra 60 cents on a ten dollar purchase will hurt sales?
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