FOR IMMEDIATE RELEASE
49,000 Maine Voters Ask For Repeal Of State's Snack Tax;
GMA, In-State Allies Work To Support Grassroots Effort
Contact:
Scott Openshaw, Director, Communications, 202-295-3957
Brian Kennedy, Director, Communications, 202-639-5994
AUGUSTA, MAINE, February 14, 2000 - Over 49,000 registered voters in Maine are calling for the repeal of the state's discriminatory snack food tax, which could end up on the November ballot if lawmakers fail to act during the next several months.
The Grocery Manufacturers of America, working with in-state allies belonging to the Don't Tax Food Coalition of Maine, supported the grassroots effort to gather the signatures, which were delivered January 31 to the Maine Secretary of State. If the signatures are validated, the initiative will go before the Maine Legislature this session. Should the Legislature not enact the proposal, voters will get a chance to vote on the repeal in November.
"GMA and the members of the Don't Tax Food Coalition of Maine are hopeful that legislators will follow the lead of tens of thousand of voters and repeal this unfair, regressive and discriminatory tax," said Chip Kunde, GMA Vice President, State Affairs. "Consumers have no way of knowing which foods are taxed until after paying for them at the check-out counter."
Maine did not tax groceries until 1991 when the Legislature, seeking a quick fix to a severe budget crisis, enacted a selective food tax known as the "snack tax". Although many legislators at the time acknowledged that the snack tax was bad fiscal policy, it was generally understood that the tax would be a temporary measure. While the state's fiscal condition has improved and revenue projections now forecast a budget surplus of over $250 million, the snack tax has never been repealed despite numerous legislative attempts to do so.
The 5.5% tax affects such grocery staples as crackers, bread sticks, ice cream, frozen yogurt, muffins, pies, cookies, cakes, gelatin, puddings, hot cocoa mix, marshmallows, breakfast bars and roasted nuts.
Proponents of the repeal point out that a tax on food is discriminatory and unfair because it places a disproportionate burden on lower-income households.
The Don't Tax Food Coalition of Maine is a coalition of consumers and businesses that is leading the statewide effort to repeal the tax on snack food.
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Based in Washington, D.C., the Grocery Manufacturers Association is the voice of more than 300 leading food, beverage and consumer product companies that sustain and enhance the quality of life for hundreds of millions of people in the United States and around the globe. Founded in 1908, GMA is an active, vocal advocate for its member companies and a trusted source of information about the industry and the products consumers rely on and enjoy every day. The association and its member companies are committed to meeting the needs of consumers through product innovation, responsible business practices and effective public policy solutions developed through a genuine partnership with policymakers and other stakeholders. In keeping with its founding principles, GMA helps its members produce safe products through a strong and ongoing commitment to scientific research, testing and evaluation and to providing consumers with the products, tools and information they need to achieve a healthy diet and an active lifestyle. The food, beverage and consumer packaged goods industry in the United States generates sales of $2.1 trillion annually, employs 14 million workers and contributes $1 trillion in added value to the economy every year.
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