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ITHACA, N.Y. - Approximately one-third of all U.S. counties do not exempt grocery foods from the general sales tax, which means the lowest-income families living in those areas are most susceptible to food insecurity. New research from Cornell University finds that even a slight grocery tax-rate increase could be problematic for many. An increase of 1% to 4% may sound small, but after several trips to the grocery store, the extra costs can create serious burdens for the lowest-income families, said co-author Harry Kaiser, professor of applied economics and management in the Charles H. Dyson School of Applied Economics and Management. We found that even the slightest increase in tax rate correlated to an increased likelihood of food insecurity. Grocery taxes that rose by just one percentage point led to a higher risk of hunger in households.
May 20, 2021
Approximately one-third of all U.S. counties do not exempt grocery foods from the general sales tax, which means the lowest-income families living in those areas are most susceptible to food insecurity.
A new study co-authored by Harry Kaiser, the Gellert Family Professor at the Charles H. Dyson School of Applied Economics and Management, finds that even a slight grocery tax-rate increase could be problematic for many.
“An increase of 1% to 4% may sound small, but after several trips to the grocery store, the extra costs can create serious burdens for the lowest-income families,” Kaiser said. “We found that even the slightest increase in tax rate correlated to an increased likelihood of food insecurity. Grocery taxes that rose by just one percentage point led to a higher risk of hunger in households.”