Speaker's Stand ... Need to end sales tax on food
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It is time to make history for the working families, the great middle class, of Alabama, but Senate Republicans say no. Our Senate Democratic Caucus believes it is time to eliminate the state sales tax on groceries. That is what we tried to do last week. And guess what? Senate Republicans, every single one, voted against the tax cut, delaying passage. Our Democratic Caucus is trying to pass this food tax cut again this week, and if you think the families of this state need tax relief, you need to call your senator and demand it get done. When this tax cut is implemented, every family of four in Alabama making less than $137,000 annually will have their taxes cut. All in all, 80 percent of Alabamians will get a well-deserved tax cut. Our plan will immediately help Alabama's seniors, many who live on fixed incomes and who pay no taxes on their retirement income. By eliminating the sales tax on groceries, fixed-income seniors will see perhaps the biggest gain of any group. The timing for this tax cut could not be better. In the last few months, wholesale prices have increased by records not seen in 30 years. The price of a gallon of gasoline hovers around $3.50. The cost of bread and milk is rising every week. All of this financial pressure is eating away at the pocketbooks of Alabama's middle class in a state where the per-capita income was $32,404 last year, according to the U.S. Bureau of Economic Analysis. All of this financial pressure points to the same conclusion: The average working adult in Alabama is drowning in extra costs that are rising faster than their incomes. Yet Alabama continues to charge a sales tax on groceries, one of the most unfair taxes in existence. Removing the state sales tax on groceries is an immediate tax cut that helps every family — every single one. By eliminating this tax, every family — every time they buy groceries — will receive an immediate tax cut. Eliminating the sales tax on groceries is a tax cut delivered every day of every year, not a once-a-year reduction. By eliminating this tax, we eliminate an immoral tax. It is wrong to tax a basic necessity of life like bread and milk. And that tax hits every family the same, regardless of income. That is wrong, and that is immoral because the sales tax on groceries disproportionately impacts the family budgets of middle class and working families of Alabama. How do we pay for this tax cut? We do it by stopping individual taxpayers from deducting the federal income taxes they pay from their taxable state income. Right now, Alabama is just one of two states that allow such a deduction. By eliminating the food tax cut and paying for it by eliminating the federal income tax deduction, we cut the total tax burden for 80 percent of Alabamians. Our legislation also lowers the income tax for many lower-income households by raising the annual income threshold at which a family of four starts paying state income taxes from $12,600 to $20,000. We must help these working families who play by the rules, work every day, raise a family, obey the law and yet barely keep their heads above water. Get ready for the kicking and screaming from Alabama Republicans. They will twist the facts. They will try to scare you. They will claim this plan is really a tax increase on the middle class. They will claim this tax plan only helps poor people. When you hear people oppose this plan understand one thing: They are either rich people or they represent the rich. Because you know what? A few rich people will pay just a little more under this plan. But never forget two things: One, this plan is a constitutional amendment. That means you will make the final decision in November whether to remove the state sales tax on groceries. Second, remember the number $137,000. Every middle-class family of four that makes less than that annually will receive a tax cut. For the rest of their lives. So let's make history together. Let's eliminate once and for all the abomination that is the state sales tax on groceries. It's the right thing to do for Alabama. Sen. Zeb Little, a Democrat from Cullman, is the Alabama Senate Majority Leader. |
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