Sales Taxes on Food

The general sales tax in effect last year in 45 States and the District of Columbia' was the most important source of revenue for about one-fourth of these jurisdictions. In 1977, about I of every 6 tax dollars collected by States and localities came from the general sales tax, slightly more than from income taxes but less than from property taxes. Twenty-five of the States with a sales tax plus the District of Columbia exempt food for home consumption (food at home), and six States, including two with food exemptions, provide for a credit against income taxes. The sales tax is a popular source of revenue largely because it can be efficiently collected and is not easily avoided. Some critics argue that while it is an efficient revenue generator, the sales tax-and especially the food sales tax-is inequitable because higher income individuals can more easily page than those with lower incomes.