Americans for Prosperity-Indiana Urges Opposition to Vigo County Food and Beverage Tax

Jan 23, 2018 by AFP

Grassroots organization to mount information campaign

INDIANAPOLIS, IN – Americans for Prosperity-Indiana (AFP-IN) today expressed opposition to Senate Bill 35, which was introduced by Senator Jon Ford and would authorize the Vigo County Council to impose a county food and beverage tax. The food and beverage tax is projected to cost Vigo County taxpayers between $1.27 million and $2.1 million annually. A Senate committee today voted 11-0 to approve the legislation, which now goes to the Senate for a full vote.

“Raising taxes won’t help attract new business and revitalize downtown. These types of taxes either hurt small businesses that already operate on such razor-thin margins or make everyday goods more expensive for lower- and middle-income consumers,” said AFP-IN State Director Justin Stevens. “To create the type of pro-growth, business-friendly environment that Terre Haute needs, the Vigo County Council should lower taxes and let folks keep more of their hard-earned money that they can in turn reinvest in our communities. We will continue to monitor this bill and mobilize our grassroots activists to fight this at the local level if needed.”

Background:

According to local officials, the tax would be used to help “revitalize a historical downtown building into a hotel and parking.”

But food and beverage taxes have proven to be ineffective in raising the projected revenues. Baltimore imposed a similar tax, and the revenue fell far short of projection. Even worse, Walmart closed its only Baltimore location and local grocery chains laid off employees and closed due to decreased revenues.

A soda tax in Cook County, Illinois was recently imposed to try and fill a $200 million deficit. It proved to be so unpopular that it was repealed nearly two months later.

Small businesses in Seattle, Washington fought a soda tax that was imposed at the start of this year. They warned they will experience job losses and possible store closures due to the effects this tax has on their revenues.

For further information or an interview, reach Lorenz Isidro at LIsidro@afphq.org or (703) 887-7724.

Americans for Prosperity (AFP) exists to recruit, educate, and mobilize citizens in support of the policies and goals of a free society at the local, state, and federal level, helping every American live their dream – especially the least fortunate. AFP has more than 3.2 million activists across the nation, a local infrastructure that includes 36 state chapters, and has received financial support from more than 100,000 Americans in all 50 states. For more information, visit www.americansforprosperity.org

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