February 2, 2007 – For immediate release...

Press release issued by TFT member group, MANNA.

Contact:

• Christina Kretchik, MANNA, 615-945-8105
• Chanda Freeman, Area Relief Ministries, 731-267-4235
• Beverly Howard, Food Pantry at St. Paul's Episcopal Church, 423-247-5893

Anti-hunger groups statewide call for reduction of state food tax

"Tennessee is a land of caring, hardworking people, who believe in doing what's right. This year, Legislators and the Governor have a chance of living up to those Tennessee values by enacting a long-overdue cut in the state's high food tax," states Fay Holcomb of MANNA, an anti-hunger advocacy group based in Nashville. Holcomb adds, "Reducing the state food tax will be a helpful move for many lower and middle income families working hard to keep food on the table. Like a chain, Tennessee can only be as strong as its weakest link. We ensure the strength of every link to have a stable and prosperous community."

Other anti-hunger advocates across the state share this view, including Lisa Peoples, Executive Director of Area Relief Ministries (ARM), a faith-based social service agency that serves Jackson and other West Tennessee communities. Peoples states, "These are the people who are faced every day with the dilemma of how to meet their basic needs. The money that they would save if there were no tax on their food could go to buy medicine, school supplies and other necessities." Peoples adds, "We've heard a lot of talk about using an increase in the cigarette tax to pay for a reduction of the food tax. We would certainly be in support of such a measure."

Beverly Howard of the Food Pantry at St. Paul's Episcopal Church in Kingsport adds, "Lowering the food tax would be beneficial to the 7,000 persons we served last year. We have seen an increased need even though the number of agencies providing food is increasing. $512 a month in SSI is just not enough." Howard readily admits that she has driven to Virginia to buy her own groceries because of the food tax difference.

Other food pantries in Nashville and elsewhere join the call. "For anyone who is living on a limited income, reducing the tax on food would make a big difference. We serve mostly homeless persons, but at the end of the month we see more residents of the neighborhood whose money did not last the whole month." says Amy Gallagher of the Luke 14:12 program in the Music Row area of Nashville.

Tennessee currently has the highest food tax in the nation, but that may soon change. This year, two proposals to reduce the state food tax are currently being considered in the General Assembly. One plan would reduce the food tax by a half-percent each year over 12 years until it is gone. It does not replace the lost revenue. Another plan would cut the food tax in half by July of this year, paid for with an increase in the cigarette tax.

"Of the two proposals on the table, we'd prefer the swap since it cuts the food tax a lot faster and it also replaces the revenue so we don't hurt our schools or other important programs," states Holcomb. "Either way, we're glad that the food tax cut is getting so much attention this year."

"Years ago, policy makers did the right thing by making sure at the very minimum, groceries purchased with food stamps were not subject to the sales tax," Holcomb adds, "but those food stamps only cover a small portion of what most low-income families spend on groceries. What they buy out of pocket is still taxed. And then there's the thousands of families who don't qualify for food stamps, but still struggle to keep healthy meals on the family table. A food tax cut will be good for all these families and families everywhere in Tennessee."

"Whatever else the General Assembly may do this year, we hope a cut in the state's food tax is top of their list," concludes Holcomb.

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