Our Opinion: Grocery Tax
Published 12:00 am Wednesday, April 16, 2008
Legislators one step closer to needed tax removal
The state House of Representatives made one step closer in the removal of
the 4 percent state sales tax off groceries. The plan also would lower state income taxes for many lower-income households but raise them on many upper-income households.
Supporters of the plan estimate that 80 percent of Alabama households would save money or break even under the plan, while 20 percent would pay more in taxes.
The plan would save consumers $320 million a year by removing the tax from groceries for individuals,
estimated the Legislative Fiscal Office.
If at least 21 of the 35 state senators also vote for it, voters statewide would decide Nov. 4 whether to give final approval to the tax plan or reject it.
It is our hope the senators will follow suit with the representatives move and vote to approve this new plan. Not only will it help have a great economic impact on the majority of the households in the Black Belt, but it might also increase consumer spending with grocery merchants. Less taxes to pay, more money to spend.