Monday, the Alabama Senate will again consider SB 431 which would allow for a statewide vote on whether to eliminate the state sales tax on groceries. The are needing one vote to get this thing to the voters. Three Republican senators abstained from the vote last time, so hopefully one of them will wake up and do the right thing and get this thing over the hump.
Look, this is not a vote to eliminate the tax, it is just a vote to allow the citizens of this state to vote whether or not to eliminate it. It seems to me that the Senators need to trust us citizens to do what is right. What is right, however, seems to me to be fairly obvious, if you have any sense of justice in you.
Consider this:
- Alabama is only one of 2 states in whole USofA that place a full sales tax on groceries.
- Alabama is one of only 2 states in good ol' America that levy more than $300 in income tax for a family of four at the poverty line.
- Alabama is one of only 2 states from sea to shining sea where a family of four has be start paying tax on income as low as $12,600! That is a family of four on $12,600.
Republicans have, of course, cried afoul. "NO FAIR!" they shout. We will not allow "wealth to be redistributed." We will not raise taxes on some for the benefit of others. They will try to guilt you into thinking that the wealthy are overly burdened by carrying the weight of this state's financial load. The top 20% of income earners in the state are paying 47% of tax revenue. That is almost half, they will say. It is just not fair, they lament through their bourbon breath.Why should only 20% of the population pay 47% of the taxes, they like bemoan.
What they fail to mention is that same top 20% of income earners in the state that are paying 47% of the taxes, earn 57% of all the income that is earned in this state. At the very least, shouldn't they be paying 57% of the taxes!
For those who want dig into the numbers further consider this analayis from the Legislative Fiscal Office:
For tax payers who itemize their return in 2009, the effect of this legislation would result in a net tax cut for Married Couples filing jointly with 2 children even if their adjusted gross income (AGI) was $125,000. That is a tax cut for couples making well over 6 digit household income. Married couples with no children with an AGI of $75,000 or more will have a slight increase, but those with couples with AGI of $50,000 or less will see a net tax cut.
Singles will see a slight increase but it is minimal. For single tax payers with an AGI of $50,000 their net tax only goes up between $31-$48. A single tax payer with an AGI of $125,000 would see a net tax increase of $355-$372. My guess is that if you are single making that kind of money in a low cost state like Alabama, you wouldn't even notice the difference.
Finally, you might want to note that a family of four making less than $100,000 a year will see there taxes go down by as much as $1,036! That can be significant relief as gas and food prices soar.
My question is do we or do we not believe in liberty in justice for all or it is just those who make enough money to buy it. Let's hope that it is the former!
HT to Scott Stantis, editorial cartoonist for the Bham News. I often disagree with his commentary, but he nailed it on this one.
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