Primum non nocere

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Unless Alabama lawmakers can find some way for a proposed measure that would lift state sales tax from food items to create a net savings for taxpayers — or at least remain neutral — they should let the bill die quietly.

As the measure stands now, it would cost most Alabamians more in taxes.

The proposal now under consideration would remove the state sales tax on food, saving Alabamians $364 million per year.

To make up for the loss of revenue, the measure would also eliminate a state income tax deduction for federal taxes paid, which would generate $426 million per year. In other words, this proposal is tantamount to a $62 million tax increase.

In many ways, government budgets are like helium balloons: Push one side, the other side bulges. Lawmakers may lift the tax from groceries, but must somehow replace the revenue. For instance, there is no sales tax on food in Florida, but property taxes in the state are far greater than those in Alabama.

Even with state sales tax removed, shoppers would still find their groceries are subject to city and county sales taxes. Those governing bodies could consider excluding grocery items, but would also be forced to find ways to replace lost tax revenue.

We agree that a budget based on sales tax revenue is regressive and unstable. Unfortunately, that’s what our state has been saddled with, and lawmakers seem to prefer to tinker with this rustbucket rather than create a sleeker, more equitable and more stable system through tax reform.

We urge our decision-makers to embrace one of medicine’s guiding principles: Primum non nocere — First do no harm.

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Flag Comment Posted by Pinget on February 18, 2009 at 4:36 pm

Cry me a river. Alabama’s property taxes are ridiculously low. property tax rate map - http://www.taxfoundation.org/UserFiles/Image/Blog/proptaxmap.jpg

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