Baker ponders push for sales tax on food

While the budget debate rages in the Nebraska Legislature, State Sen. Tom Baker of Trenton is deciding whether to push for an across-the-board sales tax on food.

In this morning's telephone conference with the legislative committee of the McCook Chamber of Commerce, Baker said up to 35 of Nebraska's 49 senators have indicated to him they support the sales tax on food, but the Trenton lawmaker said he is not certain the support will hold up during intensive filibustering.

"I got blistered on the floor by several vocal senators when I proposed the tax on food," Baker said. Sen. Ernie Chambers of Omaha and Sen. Dave Landis of Lincoln are among those vigorously opposed to the food tax, and they are expected to lead the filibuster against Baker's plan, should it be introduced.

Two possibilities for Baker are to attach the sales tax on food plan to Sen. Kermit Brashears' priority bill, LB 759, or to Sen. Landis bill, which will come out of the Revenue Committee.

If approved, the sales tax on food would raise an additional $118 million per year. This would make a huge dent in the spending shortfall projected for Nebraska for the next two years. Opponents of the sales tax on food argue that the plan would hit low income families the hardest. To counteract this argument, Baker's plan would exempt families receiving federal food stamps from paying the tax.

In coming days, Baker will be visiting with senators one-on-one to see if the plan has a chance of passage. "If it doesn't, I don't want to waste time," he said.

With a broad expansion of the sales tax, Baker has two main concerns: 1. That partial taxes -- on items such as gum and some sweets -- will be too hard to implement; and: 2. That senators will make up the budget shortfall by shifting more taxes to property.

Since returning from the Easter holiday Tuesday, Baker said all the legislature's time has been taken up with Sen. Brashears' LB 759. That would allow an additional .10 on the local school levy lid and place a tax on gum and candy. It would also make permanent the additional 30-cent per pack tax on cigarettes. The plan also provides a $5,000 homestead exemption for all homeowners.

Baker predicts a vote on the plan by Friday afternoon, freeing the legislature to focus on other matters next week. "From here on out, it will pretty much be budget, budget, budget," he said. There will be some consideration of senators' priority bills, but otherwise all attention will be focused on resolving the spending crisis.

A major factor in making that decision will be the Economic Forecasting Board's report, due out Friday. If the report lowers the state growth rate, it could put further pressure on the legislature to reduce spending by state agencies, Baker said.

Not much time is left. The Nebraska Legislature adjourns June 2, leaving just over a month to conclude the budget discussion.

Representing McCook in this morning's discussion were Larry Eisenmenger, Dixie Lorentz, Marv Lorentz, Gene Morris, Jerda Garey, Duane Tappe and Marie Owen.