Sackin' Arkansas' Grocery Tax

As many of you know, in 2007, Governor Beebe followed through on his campaign promise to responsibly phase out what is considered one of the most regressive taxes in the country. While only half of the tax was suspended, the $121 million cut amounted to the largest tax cut in the history of Arkansas. It is everyone’s hope that the Governor’s Office will be able to finish it off in the next legislative session this spring.

Even though Arkansas’ economy has been bucking the trends of the “slow down” the rest of the country faces, the people who prepare the state’s budget will no doubt be cautious as they make decisions in the next six months. There might just be a solution that helps eliminate that tax and can clean up the environment that just happens to start at the grocery store:

I propose that the State of Arkansas place a ban on the use of plastic bags in grocery and retail stores that will would go into effect at the end of 2010 or 2011. Until that time, a $.25 tax, or whatever price makes sense, will be charged to the customer for each plastic bag used. This will drive the demand for people to begin using reusable canvas and cloth bags, while simultaneously raising money to help displace money lost for the grocery tax. While this money would end when the ban goes into effect, it gives the state flexibility in replacing lost income from the tax, while giving the industry time to adjust to business without plastic.

Some will say that this is a burden on the poorest Arkansans, but unlike the Grocery Tax, this would be a tax people choose to pay, and with reusable bags available at Wal-Mart, Kroger and many other stores around the state for only $1, I certainly don’t see that as a great burden.

Others will say that many stores offer recycling of plastic bags on site. They are right and those stores should certainly be applauded, but only about one percent of bags end up getting recycled.

People will argue about implementation, but other places are doing it. China is doing it. California is going to do it. Because of a tax Ireland put in place, plastic bag use has been cut by 90 percent. I happen to know that there are some bright people that are currently working for the state. Surely we can all come together and put something together than works.

On the fluffy environmental geek feel good side, there are a whole host of reasons to utilize reusable bags. The Sierra Club says:

Reusing a bag meant for just one use has a big impact. A sturdy, reusable bag needs only be used 11 times to have a lower environmental impact than using 11 disposable plastic bags.

In New York City alone, one less grocery bag per person per year would reduce waste by 109 tons and save $11,000 in disposal costs.

Plastic bags carry 80% of the nation's groceries, up from 5% in 1982.

When 1 ton of paper bags is reused or recycled, 3 cubic meters of landfill
space is saved and 13 - 17 trees are spared! In 1997, 955,000 tons of paper bags
were used in the United States.

When 1 ton of plastic bags is reused or recycled, the energy equivalent of 11 barrels of oil are saved..

Oil consumption, environmental and disposal costs all need to be factored in to the definition of “cost.” However, this is a great example of how a sound environmental policy has broad implications and makes great economic sense right now, without even taking these things into consideration.