Gov. Bill Ritter’s proposal to tax Forrest Gump’s box of chocolates, as well as many other candies, is barreling through the Colorado legislature faster than a speeding bullet and well before Colorado consumers have an inkling that their favorite candy treats are about to cost them more.
The rhetoric around this tax has suggested lofty goals, such as building a “21st century workforce” and “preserving the future for Colorado kids.” The truth is the adoption of a discriminatory sales tax will have a huge and immediate impact on many small confectionery businesses like Enstrom Candies, which has been manufacturing and selling confections in Colorado for 50 years.
Last year, our sales were down because of the economic recession and we were forced to lay off members of our workforce. In addition to our nearly 150 employees, we also paid more than $3.3 million to 340 different Colorado vendors last year. Enough already. The last thing local businesses can afford in these difficult times is to raise their prices through taxes or any other means.
In addition to the impact on the business of candy, the tax proposal is discriminatory as well as confusing. Candy is being singled out as an “OK” food to tax because it’s not a “necessary” food. Tell that to all the daughters, wives, girlfriends, friends, grandmothers, and co-workers in your life who smile with pleasure at the mere thought of chocolate. And tell that to the producers of butter, peanuts, almonds, cocoa, vanilla, blueberries, cranberries and the many other wonderful ingredients in our products.
These same ingredients are also in ice cream, fudge brownies, peanut butter and blueberry pie, yet these items will not be taxed.
And to further add to this nonsensical tax, the definition of candy is not straightforward. In the bills under consideration in Colorado, a chocolate-covered pretzel would not be taxed but a chocolate-covered strawberry would. These ambiguities will cause very real collection and enforcement problems at the retail level, especially for retailers lacking scanning equipment. It makes more sense from a tax-policy standpoint to treat all food the same.
Finally, let’s face it, taxes on any food items are among the most regressive taxes in America. Low-income persons spend a larger portion of their income on food purchases than do the more affluent. It is the poorest citizens of Colorado who will bear a disproportionate share of the burden imposed by discriminatory food taxes, including our elderly citizens. Not surprisingly, food taxes are among the least popular taxes with voters.
And that’s why, of course, this tax is being rushed through the Colorado legislature, before too many constituents know that one of their favorite, inexpensive small pleasures in life is just about to become more expensive.
Rick Enstrom of Lakewood is regional manager of Enstrom Candies. He is a retired county commissioner, retired wildlife commissioner and former member of the Board of Great Outdoors Colorado (GOCO).
