FROM BREAD FOR THE WORLD;
South Dakota’s food tax refund program reaches fewer than one percent of the state’s low-income households. During the most recent quarter, refunds went to only 630 households statewide. But South Dakota has at least 94,000 low-income households, 32% of the state’s households (the number at the time of the 2000 census).
Rebate-type programs are inherently ineffective in reaching low-income people. This has been known for years from the extremely low numbers reached by South Dakota’s tax refund program for low-income senior citizens and citizens with disabilities. No matter how simple the paperwork, low-income people are missed for many reasons. Low-income, and now some middle-income families, have many stresses and time-consuming issues. They lack financial advisors to keep them signed up for available benefits. Some do not want to go to the store with a debit card from the state. Also, many are elderly, ill, mentally incapable, emotionally distraught, or simply dealing with the crises that come more often to lower-income homes.
“We feel the state made a mistake five years ago in assuming the problems of taxing food could be solved with a rebate-type program,” says Cathy Brechtelsbauer, state coordinator for Bread for the World. “It should be clear by now that cutting the tax on food is the only practical and effective way to reach all the struggling families, elderly and disabled South Dakotans who are negatively impacted by the food tax.”
Even one percent off the food tax would give more benefit to low-income people, as a group, than the rebate program.
Optional addition to the article:
This year legislators sharply narrowed eligibility for the food tax rebates. They excluded households with any amount of food stamps, even partial allotments, leaving only about 12,000 of over 94,000 low-income households eligible.
“Denying refunds for people with food stamps, especially those with only partial allotments of food stamps, ignores the reality that food stamps commonly run out before the end of the month. Then food must be purchased with hard-to-come-by cash normally needed for other necessities like transportation or laundry,” says Brechtelsbauer.
Store clerk Debbie Koppman misses the rebate that formerly came on her debit card every quarter, “It came in real handy. In that month, it was real nice to get it just when food stamps were running low. You could buy milk or cereal or some hamburger that you needed.”
The rebate is just BS story to get the issue off the table. I love how rich people like to stick it to those less fortunate people in our society.
Trust me, your statement is right on, if you were at the EC meeting on Wednesday, the TF did everything in their power to make it seem like they were concerned about the poor. Of course Daby cried about not getting any money for a new HW and Dykhouse basically said it wasn’t the TF’s problem (the poor). Dykhouse just likes to rip them off in his real job, not actually care if they can afford food. He can afford food though but still ate a couple of slices of free pizza at the meeting. I think they were serving kool-aid as the beverage.
John – Rich folks don’t enjoy “sticking it” to anyone but their chosen sexual partners.
However, many are clueless about what it’s really like to be poor and do things for poor folks that don’t really help – such as anything dealing with tax credits or exemptions. If you aren’t making any money in the first place, how the hell is a tax credit going to help you?
Good point Ghost. The sales tax on food should just plain be eliminated. I have maintained for years that advertising of all types should be taxed. Look at what could be made from politicians, alone.
GoD- I have often said ‘tax credits’ only benefit the rich. Income taxes should be just that; a rate based on your income, no exemptions.
Great points. Changing the subject a little, wouldn’t it be great if an agricultural state could actually feed itself?
http://www.billingsgazette.com/news/state-and-regional/montana/article_35f955d8-cc0a-11de-9a1f-001cc4c002e0.html