Prompt Cast
Complexity of Tax Laws on Food Items in New York State
TLDR Tax laws on food items in New York State have become increasingly complex over time, leading to confusion and debates over what is taxable. Creative strategies, loopholes, and exemptions have been used to navigate these complexities, ultimately benefiting big companies in the food industry.
Timestamped Summary
00:00
The definition of a sandwich for tax purposes in New York State includes burritos, leading to confusion and complexity in taxation laws.
03:03
Tax laws regarding food started out simple in the 1930s with a sales tax on everything, but exemptions and exceptions quickly made the system more complex over time.
05:33
Tax laws on food items can be complex and lead to debates over what is taxable and what is not, as seen with examples like cold pastrami sandwiches and heated pastrami in California.
08:19
Creative strategies to avoid taxes on food items have been employed, such as selling wraps unassembled to be classified as groceries or renaming a pizza shop to a bakery to benefit from tax exemptions on certain food items.
10:48
Tax exemptions for certain food items, like cake being tax-free while candy was taxed, led to lobbying efforts and loopholes that ultimately benefited big candy and big cake companies, showcasing the complexities and unintended consequences of food tax policies.
13:34
The drive-thru was likely inspired by tax loopholes, with In-N-Out Burger benefiting from tax exemptions on drive-thru sales in the 50s and 60s.
16:10
Sales tax complexities and loopholes in the food industry lead to questions about what should be taxed and how to simplify the system.
