Enjoy a doughnut as you ponder food taxes

Reviewed and updated Friday, June 4, 2021

I'm generally a cereal person when it comes to breakfast, cold in the summer and the occasional bowl of oatmeal or Malt-O-Meal in those few months when temperatures drop here in Central Texas.

Today, though, I'm going to stop by my local doughnut shop.

Why the change to the most important meal of the day? It's National Doughnut Day! Or National Donut Day if you're into texting or Twitter and are looking for a character shortcut.

In addition to giving me an excuse a reason to munch on a sweetened round of iced dough, today is a chance to acknowledge the very serious origins of doughnuts. And — wait for it — taxes, of course.

Saluting doughnuts' military connection: As I noted in my Doughnut Day post back in 2014 when this culinary celebration fell on D-Day, there's a military connection.

During World War I, Salvation Army officers who went to Europe to comfort U.S. troops did so by talking to the soldiers, helping them write letters home and, yes, bringing them freshly-made doughnuts.

The treats were so welcomed by the members of the military that the Salvation Army reprised its doughnut serving duties during World War II.

In fact, doughnuts were so popular that other military aid organizations also took to handing out the goodies. That's a Red Cross "Donut Dolly" there to the right serving Gen. Mark Clark a warm doughnut during a break in hostilities along the WWII Italian Front in 1944, courtesy of the Records of the Office of War Information and the National Archives.

Paying doughnut tax dollars: If you join me today in saluting doughnuts, you could end up paying a bit more dough for your dough.

Sales tax data compiled by the Federation of Tax Administrators shows that some states or local jurisdictions within them collect tax on food products. But at least the tax is sometimes at a lower rate than is applied to other products.

Then there's the issue of where you buy it. For most eat-in items — that typically means a restaurant, casual or more dressy, where you sit at a table and consume — you'll pay tax on the meal.

And some places tax only what is legislatively deemed "bad" food, generally things like candy, high-fat products or sugar-sweetened beverages. These so-called sin taxes can get complicated as Utah's food tax flow-chart indicates.

Saving doughnut dollars: But there's good news today. Many doughnut sellers are offering their specials on their goodies on this National Doughnut Day.

Krispy Kreme will give you one free doughnut of your choice. If you show proof that you received a COVID-19 vaccination, you get two freebies.

Dunkin', formerly Dunkin' Donuts, shops that are taking part in today's celebration will give you a free doughnut when you buy any beverage. The special offer is available all day Friday while supplies last. 

Tim Hortons loves doughnuts so much it's extending National Doughnut Day for its registered rewards members. They will get one classic or specialty donut for 50 cents with any eligible purchase over 50 cents when they scan for rewards in restaurants or place a mobile or delivery order. The offer runs through June 15.

You can find more doughnut special deals in this USA Today story or just check with your local bakery.

You also might find these items of interest:

• Doughnut tax outrage on Sleepy Hollow
• Hungry? You better have an appetite for taxes, too
• Wake up and smell the coffee — and tax connections