[SouthernBoy205]

Really?! I was watching the morning news, and it said that the House may end the 4% sales tax on groceries. This would be good for people who want to save money for various reasons.

[Southlander]

Just the state tax. County and local taxes would continue...unless each entity decided to end it, too. Wonder where the replacement money will come from? Maybe...increasing the tax on other stuff? Because they will have to replace it.

[Reactionary]

Rep. John Knight (D) proposed the Grocery Sales Tax Bill, where the revenue lost from Grocery Sales Taxes was to be more than made up by removing the State Income Tax Deduction on Federal Income Tax.

In other words, an overall tax increase or redistribution from taxpayers.

Southlander - with the 4% State tax removed, don't you think it more likely that County / City sales taxes would increase rather than end?

[7spider]

They'll get their money one way or the other. You always have the option of eating less or spending less at the grocery store, resulting in less tax revenue for state. If they eliminate that and change the state income tax deduction on federal tax, then the state will get a percentage of your money automatically each year, whether you spend less on grocerys or not. So as usual the goverment would win.

[3am green coffee]

Originally Posted by KE111691

Really?! I was watching the morning news, and it said that the House may end the 4% sales tax on groceries.

You might want to pay closer attention. The big story today is that the amendment does not have enough votes in either the house or the senate to pass.

Grocery tax bill stalls in House (http://www.montgomeryadvertiser.com/article/20090303/NEWS02/903030333/1009/rss04 - broken link)

Too bad. Yet another bit of wishful thinking.

[southernnaturelover]

A lot of people here drive across the state line into Florida to get their groceries (no grocery tax in FL). It doesn't make that much of a difference to me.

[RebelPhotog]

Understand that the tax is revenue and the state is not going to give up revenue. They will recoup it in some way. Past bills have focused on getting that money back in in various methods associated with property taxes and ending some tax deductions. Any time someting like this comes up, you have dig deeper and find out who gets the help and who foots the bill for it? Tax payers foot the bill for everything.

[3am green coffee]

Originally Posted by RebelPhotog

Understand that the tax is revenue and the state is not going to give up revenue. They will recoup it in some way.

From the article linked above:

"The bill supported by Democrats would offset the revenue loss by removing a tax deduction on federal income taxes paid from some higher income taxpayers."

[Reactionary]

Grocery Tax Relief:

Sen. Arthur Orr, R-Decatur, has introduced a bill that would allow cities and counties to drop the sales tax on food, should bills to eliminate the state tax on food fail this session.

Irony:

Kimble Forrister, director of Alabama ARISE, a coalition of religious, community and civic groups that promotes state policies to improve the lives of low-income people, said his group opposes the bill.

"For years, we have agreed not to take the local portion of the state tax off groceries because some localities rely on it as their major source of revenue," he said. "That's why we've always focused on the state portion."