Bill To Cut Sales Tax On Groceries May Get Shelved

Alabama Sales Tax The bill appears several votes short in both the House and the Senate.
by The Associated Press
Published: Mon, March 02, 2009 - 4:54 pm CST
MONTGOMERY, Ala. (AP) - An effort to remove Alabama's 4 percent
state sales tax on groceries has stalled in the Alabama Legislature
and appears to be several votes short in both the House and the
Senate.
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.
Republicans oppose that plan and call it a "Robin Hood"
approach to tax reform. The Democratic plan has been approved by a
House committee, but House leaders have said they do not have the
63 votes - or two thirds of the membership - needed to pass a
constitutional amendment.
A Republican plan that would take the tax off groceries
gradually without replacing the revenue is stalled in the Senate.


(Copyright 2009 by The Associated Press. All Rights Reserved.)
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