By Dave Dahl

SPRINGFIELD – As Gov. JB Pritzker has proposed to eliminate the state’s sales tax on groceries, a new University of Illinois study suggests the idea hurts cities more than it helps families.

“I think there is a perception that the grocery tax is very regressive,” said Elizabeth Powers, an associate professor of economics at the U of I and interim associate director of its Institute of Government an Public Affairs. “That it causes very low-income people to pay more than their fair share of taxes.”

Those families, Powers says, pay roughly $3600 a year in groceries and thus would save $36 per year.

As for cities. Powers says, “It’s estimated that municipalities lost about $360 million; municipalities are perceiving this as a significant hit to their budget.”

Pritzker has essentially dared cities to impose their own grocery taxes, but Powers says it’s probably too late to do even that in time for the start of the state’s new fiscal year July 1.

Dave Dahl can be reached at [email protected]