Needy people receive a free Thanksgiving turkey and other holiday food staples in New York City. Getty Images / AFP
Needy people receive a free Thanksgiving turkey and other holiday food staples in New York City. Getty Images / AFP
Needy people receive a free Thanksgiving turkey and other holiday food staples in New York City. Getty Images / AFP
Needy people receive a free Thanksgiving turkey and other holiday food staples in New York City. Getty Images / AFP

A grim Thanksgiving: skyrocketing food prices mean difficult choices for many Americans


Willy Lowry
  • English
  • Arabic

The last week of every month is always hard for Leonard Edwards, a 61-year-old veteran who lives on a fixed income of $1,500 in the Washington area.

At the best of times, he barely has anything left in the bank at the end of the month. Now, with rocketing prices in supermarkets across the country, it has become even more difficult for him to meet his nutritional needs.

“Everything is much higher,” Mr Edwards told The National. “I mean, I used to walk out of the store, spend $50, I had five bags of groceries. Now, I’ll spend $50 and I got one bag.”

Mr Edwards relies on Bread for the City, a food bank in Washington’s Shaw neighbourhood, to keep food on the table through the end of the month.

“That last week of the month is always the tightest week, and with Bread for the City’s help, I'm able to continuously eat fresh produce and fruit throughout the month,” Mr Edwards said.

But the rising price of food is eating away at Bread for the City’s ability to help those in need.

Leonard Edwards, 61, relies on Bread for the City, a Washington food bank, to make it through the month. Willy Lowry / The National
Leonard Edwards, 61, relies on Bread for the City, a Washington food bank, to make it through the month. Willy Lowry / The National

“We're not getting as many food donations from people, so that's been a huge impact,” said Kenrick Thomas, communications and events manager at the food bank.

“We're also paying a lot more now for food, which has also been an impact for our programme.”

Every year during the holidays, Bread for the City offers people a $75 debit card to help pay for meals, though this amount does not go as far as it used to.

And the nation's capital is not the only place experiencing the squeeze.

In Los Angeles, the LA Regional Food Bank reported that the number of people it serves has tripled from 300,000 to more 900,000 since the pandemic began.

This means about 10 per cent of the population of Los Angeles County is now relying on the food bank’s help every month.

The LA Regional Food Bank is one of the largest in the country and so far, it has been able to stave off the effects of inflation and rising prices thanks to its proximity to California's bountiful farms.

“Most of our food donations are from farmers and growers, and wholesalers and distributors,” said David May, director of marketing and communications at the food bank.

Kenrick Thomas, communications and events manager at Bread for the City, sifts through canned goods. Willy Lowry / The National
Kenrick Thomas, communications and events manager at Bread for the City, sifts through canned goods. Willy Lowry / The National

But many food banks in the US do not have that luxury and are being stretched to the limit this year.

This Thanksgiving is one of the most expensive on record, the American Farm Bureau Federation reported, and there are several factors at play.

“These include dramatic disruptions to the US economy and supply chains over the past 20 months, inflationary pressure throughout the economy, difficulty in predicting demand during the Covid-19 pandemic and high global demand for food, particularly meat,” said Veronica Nigh, senior economist at the bureau.

The cost for a seven kilogram Turkey this year is about $24 – a 24 per cent increase from last year.

However, the cost will not deter Mr Edwards, who said he was looking forward to cooking a turkey, but he acknowledged he will have to shop carefully.

“I don't eat what I want to eat. I eat what they put on sale," he said.

This is the new reality for millions of Americans, and if inflation keeps rising many more will face the same difficult and limited choices.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: November 24, 2021, 6:32 PM