In what will be a major topic on Friday's FTR, the House Tuesday afternoon agreed to place a constitutional amendment on the ballot in November that would, if approved, remove the state's 4% tax on food and replace the revenue by removing the exemption for Federal Income Tax. The bill now moves to the Senate. A news release against the bill from GOP Chair Rep. Mike Hubbard made two interesting arguments. He said it's not right to raise one groups tax to pay for another group's tax cut, and he quotes other Republican caucus members as pointing out "illegal immigrants will be beneficiaries of the grocery tax removal". Honest. The House vote was 63-38. FTR Airs Friday night at 8:00pm on Alabama Public Television. Scott Stantis, Editorial Cartoonist, The Birmingham News, and Brian Lyman, Capitol Reporter, The Press-Register will be panelists.
That's so pathetic all I can do is shake my head.
ReplyDeleteTim, I was astounded that the point about illegal immigrants benefiting from this change would be used as a rationale for voting against it. I'll be watching tomorrow night, although I may have to cover my eyes from time to time :)
ReplyDeleteWhy is the reporting on this issue so poor?
ReplyDeleteFirst, NO constitutional rewriting is necesary to remove the sales tax from groceries. Such relief for all taxpayers has been readily available for ages subject only to lawmakers' getting off their duffs and enacting the exemption. However, they are unwilling to cut spending by $320 million, so they feel an offsetting tax hike is needed.
Second, it is the removal of the fed tax paid deduction and ONLY this removal that requires constitutional amendment, supermajorities in the legislative bodies, and a state-wide referendum. The $345 million tax hike is advertised as a simple offset to the sales tax reduction.
Has anyone considered the effects on Alabama taxpayers when the "Bush tax cuts" are not renewed in a couple years? The feds will be taking a much bigger bite of incomes and Alabama legislators will have protected their revenue stream at the expense of us taxpayers.
Nice work if you can get it!
williakz