Missouri grocery tax cut could harm school funding

Missouri residents currently pay a grocery tax of 1.225% on food purchases, which can total up to 8% in some areas due to local taxes. State Senator Mary Elizabeth Coleman is pushing to eliminate this tax, arguing it unfairly burdens low-income families. She believes that taxing essentials like food and diapers is inappropriate. However, there are concerns about the financial impact of removing the tax. If abolished, Missouri's schools could lose $184 million in funding, and local governments would also face serious revenue shortfalls, impacting services like fire and emergency response. Mayor David Dimmit of Brentwood emphasized that cutting grocery taxes could lead to dangerous reductions in essential services. Currently, about 12.7% of Missouri households struggle with food insecurity, making the grocery tax a pressing issue for many. Research suggests that a higher grocery tax can increase food insecurity among low-income families. If the tax were eliminated, families might save on their grocery bills, providing them more budget flexibility. Kansas has already eliminated its grocery tax, and some Missouri residents are considering shopping across the border. Still, experts warn that eliminating the grocery tax could lead to increased taxes on other goods and services, potentially offsetting any savings for consumers. The situation continues to evolve as Missouri weighs its options amid broader tax reform discussions.