Most Illinois residents will soon be paying the one-percent state sales tax on their groceries again.
Governor JB Pritzker's temporary tax relief is set to expire July 1 following a one-year suspension. It covered what the state refers to as "low-rate" grocery items, not the "high-rate" foods and beverages taxed at the full 6.25%.
Manuel Villaneuva, western regional director for Restaurant Opportunities Center United, a nonprofit advocating for workers in the restaurant industry, said the return of the 1% tax can be tough for the low-wage workforce, as pay is still relatively low since the pandemic, even as Illinois rents continue to climb.
He pointed out inflation is not making things any easier.
"Those little pennies on the dollar -- once you go to the grocery store -- for a family of four that is an average of $500 every two weeks," Villaneuva observed. "That can be really detrimental for their expenses."
Although many believe exempting groceries from state sales tax bases has a progressive effect, research from the Tax Foundation suggests it is not the case. It called grocery exemptions a middle-income, not a low-income, benefit, noting middle earners can more efficiently recoup the expense through grocery tax credits.
There is always some confusion about low-tax-rate versus high-tax-rate foods, based on the state's guidelines for what qualifies as a "prepared" food product.
Villanueva covers California and Minnesota as well as Illinois, and asserted although all states tax prepared foods, it is sometimes difficult to distinguish what is considered a "prepared" food.
"The only thing that I've heard of is maybe like a service charge for service workers and food workers, but never a tax on food," Villanueva emphasized. "If something like this were to happen in Illinois, you know, it would spark the flame. It's not sustainable for a lot of states, and it's not fair."
For people located within the Illinois Regional Transportation Authority or Metro-East Mass Transit District, the 1% local tax on food was never suspended. Thirty-seven states do not tax groceries at all, and of the 13 states doing so, Hawaii, Idaho, Kansas and Oklahoma provide a tax credit or rebate to offset costs for lower-income households.
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Today, nearly 4,000 Utahns are lacing up their running shoes and putting on a costume for the Utah Food Bank's 18th annual Utah Human Race.
Ginette Bott, president and CEO of the Utah Food Bank, said as many gather in the spirit of Thanksgiving, it is an important time to remember close to 320,000 Utahns face hunger, and one in 10 Utah kids do not know where their next meal is coming from. She explained by running with an "attitude of gratitude," many are helping the food bank in the fight against statewide hunger.
"We know that what we do comes at a crucial time for people on a daily basis," Bott noted. "But when you have families that are trying to celebrate a holiday tradition, regardless of which holiday they celebrate, and they have to stretch that budget even more, what we do for families is really, really important."
The event is taking place at the Sandy Promenade and starts at eight in the morning. Runners can choose between a 5k or 10k race.
The American Farm Bureau Federation found Thanksgiving dinner was less expensive this year than last but food costs still remain high compared to years past. The group found this year's "classic Thanksgiving feast" for 10 people cost just over $6 per guest. Bott pointed out the race is part of the food bank's Holiday Food and Fund Drive and encouraged Utahns to donate food, time or money if they can.
"Any of those three things would be appreciated, and if you don't come to the Utah Food Bank, go to a pantry in your neighborhood or even another organization that you are passionate about," Bott suggested. "Time of giving is great during the holiday season, and the biggest mistake people make is not doing something."
Bott stressed for every dollar going to the Utah Food Bank, they can turn it into more than $8 worth of goods and services. She added the fight against hunger takes a communitywide approach and reminded people it is not something only applying during the holiday season but throughout the course of the year. She invited Utahns to give thought to what it is they can share with others.
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As Thanksgiving approaches, some Alabama residents are facing a meal gap crisis, forcing people to choose between buying gas and medicine or putting turkey on the table.
Each month, the Community Food Bank of Central Alabama reported they serve about 250,000 people across 12 counties who experience food insecurity on a regular basis.
Nicole Williams, CEO of the food bank, said this holiday season the food bank is preparing an extra 25,000 holiday meal boxes to help feed families.
"The holidays are really all about food and family being together," Williams explained. "We want to just ensure that our neighbors who experience food insecurity have an opportunity to have a nice meal and not feel that stress of where that food is going to come from."
She noted they are working with 230 agency partners to help distribute holiday meals throughout central Alabama between now and the end of December.
Some of the 12 counties served by the Community Food Bank of Central Alabama are located in rural areas, where food insecurities can exist at higher rates, according to an Annie E. Casey Foundation study.
Williams pointed out the need for food assistance is currently at an all-time high, which is reflected at the food bank. She said they had to start finding ways to provide holiday meals way back in June, and added inflated grocery and gas prices have impacted their operations.
"I know last year we had budgeted about $80,000 for gas and we spent more than twice that much as gas prices rose," Williams reported. "The food bank also buys food. We don't just you know take donated food and so we use grant money and donor money to buy food. So, food inflation has really affected us."
Williams added people in need of food can visit feedingal.org and click the "Find Food" button on the front page. Information on volunteering at the food bank warehouse or organizing a food drive can also be found there.
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The Thanksgiving holiday is here, as too many Minnesotans still struggle with food insecurity. New state support is on the way, but with record demand forecast, food shelves are encouraging assistance in a variety of ways.
This week, Gov. Tim Walz announced $5 million in American Rescue Plan funding will be redirected to hunger relief locations around the state. Leaders say Minnesota is on pace to see more than seven million visits to charitable food shelves this year, eclipsing last year's record total.
Virginia Witherspoon Merritt, executive director of the Channel One Regional Food Bank in Rochester, said they are seeing upward trends, too.
"It can be hard for the public to understand why everywhere is hiring, but the food shelves have so many people," Merritt noted. "The answer is that these are working people. It's not that they don't have jobs. It's that the wages that they're making, with their expenses, aren't enough."
Organizations like hers welcomed the latest round of state funding, but Merritt argued Congress can establish more long-term solutions by bolstering key aid programs within the Farm Bill. Congress could not agree on a new Farm Bill, so the most recent version was extended until next September. Some Republicans have floated certain program cuts in their push for tighter federal spending.
As for the public's help, Merritt explained donating money is often the best approach, because it allows food shelves to buy the items they need. She urged Minnesotans to consider volunteering.
"If they had time to volunteer one shift a week at a food shelf, that makes a huge difference," Merritt stressed.
She added many of the smaller food shelves are entirely reliant on volunteers, including driving trucks and stocking items. The funding announced this week is in addition to a separate $5 million round of aid Minnesota distributed earlier this year.
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