Support for Ending Pop Subsidies

January 07, 2013

This legislative session will see heated debate on the state budget, taxes, and… pop subsidies?

Sen. Bill Avery has said (documented here & here) he will introduce legislation to remove a sales tax exemption on pop.  As of now, pop is considered food and thus receives the same exemption as fruits, vegetables, etc.

AFP-Nebraska opposes tax breaks for special interests and there is no reason pop should be exempt of sales tax.

By removing these types of tax breaks the tax base is broadened and thus the legislature should lower the overall sales tax rate.  With a broadened base the state income tax can also be removed.  More revenue can be created through citizens keeping and spending more of their own money: supply-side economics.

At the same time AFP-Nebraska does not support the use of these sales tax funds to create more non-essential government programs as Avery is suggesting.  This money is already needed for other projects the state government has committed us to.

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