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Published: May 03, 2008 07:55 pm
Grocery plan = tax increase
By Philip Bryan
Communications Director, Alabama Republican Party
In difficult economic times, the last thing any Alabamian needs is a tax increase. This is exactly what the “grocery tax” plan will do if passed in the form presented by Rep. John Knight, and explained recently by Sen. Zeb Little. The bill, HB274, allows for the much needed elimination of the state tax on groceries, a measure that would give relief to all in the state but will also leave a shortfall in the budget. In order to make up that shortfall, the bill removes the federal income tax deduction for many middle-class families, in essence making the measure a tax increase of approximately $25million. This broad shift of the tax burden is not right and not necessary – so Governor Bob Riley has offered a compromise.
The Governor’s plan eliminates the sales tax on groceries (while preserving the federal income tax deduction for over 98% of taxpayers), raises the income tax threshold from $12,500 to $15,500 for a family of four, provides tax breaks to small business owners and employees to make health insurance more affordable, and it provides for a vote of the people on a Constitutional Amendment establishing four-year property appraisals. The overall economic impact that this plan would have far exceeds that of HB274, and it does so without raising taxes.
While the Zeb Little Democrat bill raises taxes on many middle-class families, doesn’t help small businesses and doesn’t end annual appraisals, the Republican plan does and we call on Democrats to support this measure – and if they stand behind the promises that they have made to the people of Alabama, they will. Remember, in the Democrats Covenant for the Future, which Zeb Little flew around the state promoting in a plane paid for by the special interests, Zeb Little promised to support changing the law so the state has four-year appraisals and not annual appraisals.
The time for tax relief is now, not a tax increase.
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