How Grocery Taxes Hurt Poor Americans

Grocery taxes, though somewhat prevalent in the U.S., are often considered invisible by policy makers. Because the tax is added on at the time of purchase, it’s not staring customers in the face, says Norbert Wilson, a professor at Auburn University who researches consumer economics. “Unless you know you have just $10, you’re not standing there thinking, ‘oh, it’s actually $10 plus this tax.’ You just go with the price as-is; you kind of ignore it,” Wilson says. “It’s not right in front of us.”

Besides, across the 14 states that have one, the average grocery tax is just over 4 percent, which sounds fairly nominal. But over the course of many shopping trips, those extra dollars can tip the scales in a way that strains the lowest-income families.