Local legislators split on food tax removal bill
Changes may be made to a bill that would remove the state sales tax on grocery food items in hopes of garnering more Republican support, but some local Republicans remain skeptical.
The original bill, authored by Rep. John Knight, D-Montgomery, would remove the state sales tax on grocery foods and would replace the revenue shortfall to the state education fund by ending the state income tax deduction for federal taxes paid. Removing the state sales tax on groceries would cost the state an estimated $364 million, but ending the state income deduction on federal taxes paid would add $426 million to the education fund for a net increase of $62 million.
Rep. Benjamin Lewis, R-Dothan, said the bill would cost many Alabamians more than it would save.
“It looks like it is going to add funds to the state, so this sounds like a tax increase to me,” said Lewis, who voted against a similar measure introduced by Knight last year. “For a lot of people, not having that deduction for federal taxes paid is going to cost them more than what they would save on the state sales tax for groceries.”
But the House Education Appropriations Committee has offered a substitute that would allow singles with a gross annual income of less than $50,000 and married couples with an annual income of less than $100,000 to keep the deduction for federal taxes paid.
“This bill was aimed at helping middle class Alabamians. That’s what the focus is,” said Rep. Terry Spicer, D-Elba, who voted for the 2008 bill. “I think there are still some negotiations going on to make it even better.”
Spicer said the bill, with the new income thresholds, would help ease the tax burden on lower and middle income residents.
“I think it’s a great time to do something of this nature as long as the numbers are calculated properly,” Spicer said.
The bill would only remove the 4 percent state income tax on grocery food items. It would not remove county or city sales taxes.
“I think once you get a look and see the devil in the details, it’s not as attractive as it might first look,” said Rep. Steve Clouse, R-Ozark.
Clouse said Alabamians would experience a “double whammy” if Congress votes against extending the Bush tax cuts in 2010.
“If that happens, the federal income taxes you pay are going to be higher, which makes the deduction even more important,” Clouse said.
Knight’s bill passed the House 63-38 last year. Local Republican representatives Clouse, Lewis and Warren Beck all voted against the bill. Democrat representatives Spicer and Locy Baker voted yes. The bill died in the Senate.
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Reader Reactions
No sir, what is about is that YOU think I should pay the tax for people who made choices in their lives that keep them at a lower income level and I should be punished for making better choices.
What you believe in is, “From each according to his ability, to each according to his need (or needs).“
Can you guess who said that?
No it’s not Obama, even though it sounds like his rhetoric.
It is a slogan popularized by Karl Marx in his 1875 Critique of the Gotha Program.
“The phrase summarizes the principles that, under a communist system, every person should contribute to society to the best of his ability and consume from society in proportion to his needs, regardless of how much he has contributed.”
Sir, are you a socialist or communist?
Your side has and continues to made it about class warfare between the haves and have nots!
This isn’t about the culture wars. This is about regressive taxes on the middle and lower classes. Alabama is one of only a few states that collect sales tax on food. It’s high time that stops.
Pinget,
Painting with a pretty wide brush aren’t you?
I’m a Conservative Republican (fiscally and socially conservative). So you see I’m one of those Republicans that have no heart.
Here is what real Republicans are, believe, and identify with.
- I/we believe in the sanctity of human life especially the unborn babies that the Democratic Party wants to kill in late term abortions.
- I/we believe you should succeed in life through your own hard work and based on your own merits.
- I/we don’t think government should solve the problems that we get ourselves into and then saddle our great grandchildren with a debt they’ll never be able to pay.
- I/we believe that you are your own person and have a right to pursue the American Dream, not have it given to you.
- I/we believe in a hand up but not a lifetime of handouts and political giveaways to solidify a voting base like you just saw the Obama and the Democrats in congress do.
- I/we believe that what you earn in income is yours and no one else’s to tell you what you should do with it.
- I/we believe that taxes should be low and government should not get more than what is fair across all income levels. Just because someone has made the American Dream doesn’t mean we punish them with taxes to take it away from them because of jealousy or redistribution.
- I/we know for a fact there are more long serving Democrat Millionaires in the Senate and Congress than long serving millionaire Republicans.
- I/we believe parents should know when their child is in trouble and is pregnant unlike the liberal Democrats that think parents have no rights.
- I/we believe that the majority of parents know what is best for their children (they are there 24/7) and the “state” (government) does not.
- I/we believe the Constitution is a solid contract with the people of this county that are citizens and not a “Living Document” to be changed at will. That is why they say those rights are “inherent”, means that they are naturally part of us when we are born; given and guaranteed by God.
- I/we believe that you shouldn’t have to pay for my mistakes through your tax dollars.
- I home school my children pay all the costs but still have to pay taxes to educate other parents children so they can both work and own more stuff than me and my family on one income
You see, that is what most Republicans believe.
But I guess I’m just an uncaring rich Republican that only thinks of himself while I am going from paycheck to paycheck to support my and some other family living in the second or third generation of handouts.
Sir, I have had the past four years state tax returns audited, there were no problems with my returns. My employer also had her taxes audited both business and personal, no problems except the state found she made a mistake and actually owed her more money. I do not owe any back taxes to the fed nor do I have child support, late college loans ( I paid for my own school).The amounts owed are sizeable to say the least which is over $10,000.00 thus the audit. I have taken measures to lower the amount paid in starting this year, so the state will just have to suffer without my taxes on a quarterly bases yet a yearly base. That is the story in a nut shell I make good money and pay my taxes, am not married
No doubt this would be a tax increase on the citizens of Alabama. The average family paying the regular food tax would have an increase if you lose the federal tax paid deduction.
As for Alabama tax refunds, I already filed this year and got mine deposited directly to my account. It wasn’t much but I had no trouble.
Obviously, “Michaelthins”, there is more to the story than what you have let us known on your situation. I hate taxes as much as the next guy but I file them, pay them and get a refund when deserved and from time to time I pay in more than they hold out on payroll.
You raise this tax on couples here then President Obama lets the Bush tax cuts expire effectively raising everyone’s taxes, oh but we get 13 dollars a week from the spendulus bill he is shoving down our throats that the Nation doesn’t want. (Almost 70% of Americans are against it now.)
Raising taxes through gimmicks like this is not the answer, cutting the waste and making our government live within its means is!
Hey Clouse, tell that to someone else. Alabama’s Republicans are just protecting their rich friends, as they always do. The people of Alabama deserve a break on their food bill - one they would have in almost every other state. Especially in current economic conditions, removing the sales tax on food would be compassionate. Republicans have no compassion.
I think any state legislator that votes agaisnt this bill should be voted out of office. These people say it isn’t any good because they would have to pay more income tax as would I.
Maybe the best thing to do would be to do away with the state income tax, because if you are owed a refund you sure do not get them. I know I am owed five years of refunds, and told the state does not have the money to pay them. Then keep the food tax that way if the federal tax break is not kept then every body still wins.
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