Food Sales Tax Cut Eyed In AL

Alabama Legislature Lawmaker proposes to do away with sales tax on food in Alabama reduce income tax

by Associated Press

Published: Fri, February 29, 2008 - 6:10 am CST Last Updated: Fri, February 29, 2008 - 6:17 am CST

MONTGOMERY, Ala. (AP) - An architect of Alabama's income tax cut
is proposing an even bigger change that would remove the state
sales tax on food, reduce taxes on low-income Alabamians and raise
taxes on wealthier citizens.
The plan was designed by state Rep. John Knight with the support
of Alabama Arise, an advocacy group for Alabama's poor.
In 2006, Knight worked with Arise and the governor to raise the
threshold where Alabama families of four start paying the state
income tax from $4,600 to $12,600. Now Knight is pushing
legislation to remove the 4 percent state sales tax on food,
increase the standard deduction and personal exemption, and end the
state income tax deduction for federal taxes paid.
At a news conference Thursday with leaders of Alabama Arise,
Knight said his plan would be revenue neutral. He said about 20
percent of Alabamians - primarily those making more than $200,000
per year - would pay more. The rest would pay about the same or
less.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

For more on what's going on in the Alabama Legislature, click here Alabama Legislature

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carl Says:

Fri, Feb 29, 2008 at 7:22 am

Now your talking! Something that would actually help the people and make living a little easier for a lot of people.What a novel idea,helping people instead of slipping hidden taxes in on them.Give this person a medal,we won’t be able to drive but we may be able to eat again!

2652 Says:

Fri, Feb 29, 2008 at 7:07 am

Now someones talking real savings. If state income taxes and food taxes would be removed, people would see a big savings. People making $200,000 + should pay more taxes. They have no idea what it’s like to live off less than $50,000 annually and pay all your bills and buy groceries. My bills come first, therefore we have little money for food. No, I don’t have car payments, just a roof we’re tryng to keep over our heads.