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Lawmakers:Grocery tax ban is OK
Boothe, Mitchell both support proposal to remove tax on groceries
Published Saturday, November 29, 2008
Alabama House Democrats will introduce a ban on the grocery tax once again, and local legislators said they like the idea.
Last year, a ban on Alabama’s 4 percent grocery tax passed the House of Representative but failed in the Senate.
Now, Democrats plan to bring up the proposal in the next legislative session.
Local legislators Rep. Alan Boothe (D-Troy) and Sen. Wendall Mitchell (D-Luverne) said they are in favor of banning the grocery sales tax — it’s making up the difference that poses a problem.
“I’m all for reducing the tax on groceries,” Boothe said. “I’m not so sure how we’re going to make up the difference in the budget.”
The grocery sales tax generates around $320 million for the state, but the bill plans to compensate by removing some of the state income tax deduction that Alabama taxpayers get for their federal income taxes.
The total tax deduction is worth $550 million a year.
However, Mitchell voted against this plan last year.
“I voted against that part of it,” Mitchell said. “They were trying to remove the exemption on federal income tax on the state return, and that’s a hidden tax on people. The break we all get on our state returns by subtracting the federal income tax we pay is significant.”
But, Mitchell said he is willing to explore options to find a way to allow the bill to pass.
“I think it’s a fair thing to do,” Mitchell said. “Several states across the country have never had a sales tax on food just because it’s a necessity for people.”
Gov. Bob Riley said in a news conference last week he has another plan for making up the more than $300 million that would be lost by banning grocery tax.
Boothe and Mitchell are hoping for some kind of compromise.
“We’re going to have to look at both sides and see what’s best for the people I represent,” Boothe said.
Mitchell said timing, if anything, would be what likely hinders the bill from passing in a time where Alabama’s budget is facing severe shortages.
“If we pass a sales tax exemption bill we’re going to need to replace that money because we are in a deficit,” Mitchell said. “The timing for something like this is not good, and if it fails that will be the reason.”
*The Associated Press contributed to this report.
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Comments
Posted by MessengerReader23 (anonymous) on November 30, 2008 at 10:49 a.m. (Suggest removal)
This is really great news that both are willing to support the lifting of the unfair grocery tax. However, Booth and Mitchell both ought to read the Knight Plan since they are both quoted as wondering how the money would be made up for. The proposed plan clearly states that the plan would be revenue neutral because it would remove the state deduction for federal income tax, which means that the unfair tax burden is taken off of those who can afford to pay it the least. This should clearly be a big priority for Pike County's elected officials. Alabama deserves a FAIR tax structure.
Posted by Henderson_Hillbilly (anonymous) on November 30, 2008 at 11:17 a.m. (Suggest removal)
MessengerReader23 when you are talking about a FAIR tax structure, the sales tax is the only fair tax there is. Everyone who buys anything has to pay it. It is only FAIR as you put it is when everyone pays his share.
Posted by GlassHalfFull (anonymous) on November 30, 2008 at 12:17 p.m. (Suggest removal)
Henderson_Hillibilly - how is it fair for an elderly person who lives on a fixed income to pay the same amount of sales tax as a millionaire? Basic necessities should not be taxed. People need food to live. Yes, if you are going out and buying beer with your check you should pay the same amount as Bill Gates, but food? Give me a break.
Posted by turtle (anonymous) on November 30, 2008 at 12:29 p.m. (Suggest removal)
Everyone doesn't pay taxes on food. People who receive food stamps do not pay taxes on them. I don't even want to get into that debate because I get very frustrated seeing elderly people and people who work but need just a little bit of help being denied while others who pop babies out every nine months and refuse to do anything to help themselves get hundreds a month.
Posted by Showdown2 (anonymous) on November 30, 2008 at 12:50 p.m. (Suggest removal)
The government should be a charity. If you can't afford food you ahould starve. Society should not bear the burden of supporting the poor and needy. As far as fairness. I do not see a problem with sales tax. Keep it and move to a flat tax where EVERYONE pays the same percentage of tax on income whether they make 300,000/year or 10,000 per year. No one should be exempt from taxes and no one should have a negative tax burden.
Posted by Showdown2 (anonymous) on November 30, 2008 at 5:39 p.m. (Suggest removal)
That should be "shouldn't" or else I was being sarcastic. Whichever you prefer.
Posted by Virtuous (anonymous) on December 1, 2008 at 1:37 p.m. (Suggest removal)
Some people are so selfish.
Posted by jaxon8 (anonymous) on December 1, 2008 at 2:57 p.m. (Suggest removal)
Give the people of Alabama a lottery before you cut the grocery tax. If you don't, all other taxes will have to be raised to make up for the shortfall. That is the way Florida and Georgia did it. And by the way, if you don't like the lottery, you don't have to play.
The only fair tax there could be is a flat rate tax. 10% off the gross.Think ,the billions we would save by eliimnating 98 % of the IRS and all their forms and paperwork plus all their million dollar offices. We could sell off their computers and furniture and give everyone a stimulus check for 5 - 6 hundred dollars. Just imagine how much money is spent on collecting taxes now and how much less it would be if it came straight off the top right into the US Treasury.
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