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Illinoisans could soon get a boost to their economy once the state temporarily suspends food tax.
The case of Illinois is not common in the United States, since in most states, food does not have a tax, since it is considered a survival product.
In this state, food is taxed with 1% taxthe same percentage that applies to medicines and other medicinal items or hygiene products.
However, as of July 1, consumers will stop paying this tax, since the state authorized its suspension. for retail sales of certain groceries.
The suspension in the collection of this tax will be in force for one year, until June 30, 2023and is part of the measures to alleviate the rise in product prices due to inflation, which last May stood at 8.6%.
But not all foods will be exempt from paying this tax. According to the measure, they will only be free of lien foodstuffs that are consumed or are to be consumed outside an establishment.
For example, the products that are bought to take home to the pantry, these will stop having the tax from next July 1.
However, it is important to clarify that the products purchased in pharmacies and personal hygiene products will continue to be taxed with a 1% tax, according to a USA Today report.
Other foods such as those that are packaged for immediate consumption such as soft drinks, sweets and alcoholic beverages will continue to be subject to the 6.25% state tax charged on this type of product.
What happens in other states to alleviate the price hike
People with lower incomes are the most benefited from this type of measure; however, not all states can eliminate taxes overnight.
In Kansas, another 6.5% food tax state, recently passed legislation authorized gradually eliminate the collection of this tax.
The process will begin on January 1 of the following year, at which time the tax will be reduced to 4%; a year later, on January 1, 2024, the tax will drop to 2% and on January 1, 2025, it will be completely eliminated.
In other states, where food is not taxed, the aid consists of reductions in the collection of income taxfor example, in Mississippi and Iowa, where the rates are being modified to give relief to their residents.
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