OXFORD — Recent tax cuts in Mississippi have been described by some top Republican leaders at the state capitol as “giving a raise to the taxpayers.”
A recent column by contributing columnist Lynn Evans in Jackson’s Clarion-Ledger makes the case that most of the “raises” either go to corporations or special interest groups that have effective lobbyists. Perhaps the poor folks benefit from some trickle-down crumbs, but direct legislation benefitting the lower income often never makes it out of committee unless it benefits someone with some pull.
Evans’ column focused on the failure to get out of the starting gate a bill authored by Sen. David Blount, a Jackson Democrat, that could have provided better grocery shopping in economically distressed communities.
Called the Grocery Stores in Food Deserts bill, the measure would have provided limited tax credits for supermarkets locating in those communities as well as a sales tax exemption for building materials used in constructing the stores.
These are incentives similar to those used to lure big corporations to build factories in the state. In the past, they have been given to construct retail shopping centers in affluent areas and housing complexes for low-income residents.
“There are consequences when communities do not have places for families to buy healthy food like fresh fruit and vegetables,” Evans wrote. “Unhealthy diets too often lead to obesity” which is a major health problem in Mississippi.
Evans’ column reviewed some of the 43 bills for tax cuts spanning 2012 to 2016 that she claims “reduced Mississippi’s revenues by more than $150 million for this fiscal year alone.” They included eliminating the state portion of the alcoholic beverage license tax, multiple tax cuts related to the oil and gas industry, tax breaks for certain major pharmaceutical suppliers and major tax cuts for corporations.
Many of those tax cuts can be defended if it weren’t for the fact that they have put the state budget in a bind and a lot of needed programs, such as highway and bridge maintenance, are being underfunded.
A good argument can be made that the state should just have a level playing field on taxation, treat all businesses the same and quit giving these special incentives to benefit certain segments.
But as long as they’re being dished out, Evans is correct in concluding that “providing tax incentives for opening supermarkets selling fresh fruit and vegetables in food deserts is one way for our state to combat obesity by making it possible for families to purchase nutritious food close to home all year round wherever they live. Less obesity results in real savings to state budgets and makes our workforce more attractive to industry.”
We can surmise that there probably isn’t a huge desire by big grocery chains to build stores in “food deserts” even with tax incentives. Had they lobbied for it, Blount’s bill probably would have passed.
Dunagin, who lives in Oxford, is a retired longtime Mississippi newspaperman.
