This time from Detroit, the mecca of good government:
DETROIT (AP) - Would you like fries with that? Either way, the Detroit city treasury would like a bite. Faced with a $300 million budget hole, Mayor Kwame Kilpatrick is hoping people in this already heavily taxed city won't mind forking over a few extra cents for their Big Macs and Whoppers.
Kilpatrick wants to ask Detroit voters to approve a 2 percent fast-food tax - on top of the 6 percent state sales tax on restaurant meals. The mayor says consumers will barely notice the extra cents at the cash register, but critics say the tax would unfairly burden the poor and hamper economic development.
"Just tell him we're going to go to Bloomfield Hills to McDonald's if he puts a tax on it," said 18-year-old Ebony Ellis, referring to an affluent Detroit suburb, as she and four friends ate at a Golden Arches in Detroit. The high school classmates eat at McDonald's every day after school because their schedule doesn't leave them time for lunch.
Other cities and states have special taxes on prepared food, and some have tried "snack taxes." In New York, Assemblyman Felix Ortiz has proposed a 1 percent tax on junk food, video games and TV commercials to fund anti-obesity programs.
But if approved, the Detroit tax would be the country's first to target fast-food outlets, the National Restaurant Association said. The tax would apply to anything sold at a fast-food restaurant - even salads.
Monday, May 09, 2005
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