MI Legislator Hopes to Revive Failed Proposal Ending Diaper Tax
Rep. Julie Alexander, R-Hanover, is attempting to bring help to families across Michigan by dropping the sales tax charged on diapers. After her most recent attempt to introduce two new bills on the measure failed in December and again most recently in March, Alexander has one final shot to move these bills into consideration on the Michigan House floor.
Rep. Alexander's proposed House Bills 5611 and 5612 would make incontinence products including children's diapers and adult briefs exempt from both sales and use taxes. Alexander told WMMT this tax exemption could give Michigan families, "One more option for them to have a little tiny bit of relief on a very expensive and important item."
Given the recent economic inflation it's no surprise families are trying to save as much as they can when it comes to essential items, especially items as pricey as diapers. A recent report shows companies Procter & Gamble and Kimberly Clark control 70% of the diaper market while experts say the average newborn goes through 8-12 diapers per day. To add insult to injury, the report also showed that despite the current state of the economy, Procter & Gamble's profits are up after instituting multiple price hikes on their products.
Although the non-partisan House Fiscal Agency estimates nearly $18-20 million dollars in revenue would be lost from the proposed diaper tax cut, several Michigan organizations such as the Michigan Diaper Bank Network and Michigan Head Start Association are in support of the proposal. Alexander clarified that this loss in revenue would not affect the Michigan School Aid Fund because the money would come out of the state's general fund instead.
States like Florida have adopted similar measures regarding diapers and just this past February Michigan ended the "Tampon Tax" which means menstrual products are no longer taxable in the state. If we can do it with tampons, let's do it with diapers!
Although Rep. Alexander is currently working to find more support for the bill, there is no timeline on when or if the proposed bill will come to another vote.
Where do you stand on the Diaper Tax?