Senate Sketches # 1088
NOTE: Sen. Hank Sanders has written a weekly column for papers in his legislative district for the past twenty years. These rural, weekly papers lack a web presence, and therefore a link to the publication is not available. The column below is provided by Sen. Sanders’ office for inclusion in the Daily News Digest.
Senate Sketches # 1088
By
Senator Hank Sanders
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I said, “We ought not tax basic necessities of life. We ought not tax air. We ought not tax water. We ought not tax food.” I wanted to say, “We can only live three minutes when all air leaves our bodies. It’s three days for water. It’s three weeks for food. That’s how necessary those are for life.” I did not because time was an issue.
These words were spoken during the Finance and Taxation Education Committee (F&TE) meeting last Wednesday. As chair, I had put the bill on the agenda to remove state sales taxes from food. Still, I did not think it would be seriously considered. In my mind, it was a good idea whose time had not come.
Taking sales tax off food has been a mission of mine for many years. I do not think it is fair to tax such a basic necessity of life. It rubs me the wrong way. I became even more determined when I learned that we do not tax food for certain baby animals but do tax food for baby humans.
I first introduced a bill to remove state sales taxes from food in 1989. I introduced various versions over the years. I continued in spite of great obstacles preventing passage. A few years ago, one version passed the Alabama Senate, but it was a courtesy to me by fellow senators.
The problem is that the Education Trust Fund will lose some $320 million if we just remove state sales tax from food. The Education of our children cannot stand such a financial hit. We have proposed all kinds of solutions but none made enough sense for passage.
Last year, Representative John Knight entered the sales-tax-off-food arena. With assistance from Alabama ARISE, he devised the current bill. This year I agreed to sponsor it in the Senate while he sponsored it in the House. I liked the concept, but I still did not expect it to be seriously considered. To me, it was a good idea whose time had not come.
The bill does several things in addition to removing sales tax from food. Most significantly, it removes the state income tax deduction for federal taxes. Alabama is one of only three (3) states that allow all federal income taxes to be deducted from payment of state income taxes. This action will increase revenues by $557 million.
The bill will also increase the following deductions for state income tax payers: state standard deduction from a low of $4,000 up to the federal standard deduction of $10,900; the personal exemption from $1,500 to $2,200; and the dependent deduction from a low of $300 to $2,200. This amounts to some $220 million in income tax cuts plus the $320 million from removing state sales tax from food. The total is $540 million.
In short, the bill shifts taxes without raising taxes. It removes a unique deduction (one of three in the U.S.) which benefits a certain class but provides three benefits which help every taxpayer and another that helps most taxpayers. It is a good trade for Alabamians
Because I have been trying to take sales tax off food for so long, I didn’t really expect anything good to happen. Still, I keep trying because I believe it’s the right thing to do. When I introduced this bill to take tax off food, I told myself, “At least we are educating people.” That was my frame of mind on Wednesday, April 2, 2008 when the F&TE Committee commenced considering the bill.
After I briefly described the contents of the bill, committee members began expressing really strong support for it. From their expressions, I knew that taking sales tax off food had finally caught fire. Still, I did not get my hopes very high. I waited to see how Republicans on the Committee would respond. I could not tell by their expressions. It might still be just a good idea whose time had not come.
One problem involved the potential that local governments might raise their sales taxes on food, wiping out the benefit granted. A Republican Senator, Del Marsh, proposed a possible solution. It just seemed like almost everyone wanted to help.
After extended discussion, Senator Rodger Smitherman of Birmingham moved to give the bill a favorable report. It was seconded by Senator Larry Means of Gadsden. The roll was called. The vote was 15 to 1. Every Democrat and all but one Republican voted Aye (yes). I was very surprised. I was extremely joyful.
I was also surprised by the media response. The interviews with reporters had a different dimension. They seemed to sense the coming of time for this issue. Altogether it was a compelling moment.
I then learned that the companion bill sponsored by Representative John Knight had been considered the same day in a House committee. It passed on a voice vote that appeared to be unanimous. It was another indication of an idea whose time might be coming.
I’m still trying not to get my hopes too high. After all, this is a constitutional amendment which requires a 3/5 vote in the Senate and the House. If it passes both houses of the Alabama Legislature, it will require a majority vote by the people of Alabama. Each step is a high mountain to climb. But I feel like we are mountain climbers boosted by the force of an idea whose time has come.
Now on to the Daily Diary.
Saturday - I shared breakfast with Faya Rose Toure’ and Kindaka Sanders as we discussed various election issues. I traveled to Russell County (Phenix City) for a meeting. I talked with Shelly Fearson and Richard Avery of Alabama New South Coalition (ANSC) and shared dinner with several Russell County leaders and ANSC leaders before returning to Selma. I worked into the night.
Sunday - I did Radio Sunday School, Radio Education, and Sunday School Review. I participated in Sunday School and attended Church. I discussed community issues over lunch and worked on various items into the night.
Monday - I completed Sketches and talked to the following: Jim Buckalew of Montgomery; Michael Mee of the St. Clair News; Dr. Verdell Dawson of the Selma Board of Education; Ola Morrow about her brother’s death; Selma City Attorney Jimmy Nunn; Craig Strickland and Deborah Anthony of the Legislative Reference Service (LRS); Sally Howell of the Alabama Association of School Boards; and Eddie Hill of the State Department of Education. I worked into the night.
Tuesday - I was at work early, handling various challenges before making it to Montgomery by 8:30 a.m. to commence work on the Education Budget with Representative Richard Lindsey and others. I participated in the following: Senate Democratic Caucus meeting; Senate Bi-partisan Leadership meeting; and a meeting concerning bingo. I met with numerous Senators and others about the Education Budget and worked until 10:30 p.m. in Montgomery on the Budget. On the way to Selma, Businessman Milton McGregor caught me at a service station to talk for some time about bingo.
Wednesday - I worked two (2) hours before traveling to Montgomery for a 9:30 a.m. Finance and Taxation Education Committee meeting where we considered the bill to take sales tax off food and other bills. I also participated in these additional committee meetings: F&T General Fund; Judiciary; and Energy and Natural Resources. I talked with representatives from the Alabama Association of School Boards, the Alabama Association of School Administrators, and the State Department of Education. I had two meetings with Governor Bob Riley and others, (one involved the Alabama State Troopers and the other the Alabama State Building Commission). I worked on the Education Budget into the night before returning to Selma.
Thursday - I worked on the Education Budget all day and into the night. I communicated with representatives from Higher Education, Two year Colleges, AEA and others about the Budget. I returned to Selma to work until 10:30 p.m.
Friday - I worked on many issues including Sketches and met with the following: Rev. Gary Crum, Frank Holder and O’Neal Green about assisted living issues; Dr. James Mitchell about community issues; and Ola Morrow and several family members about the death of her brother. I communicated with the following: Former State Senator John Amari of Birmingham; Businessman Frank Chestnut; Dr. Chudy Okoye of Selma; Barnette Hayes of Selma about community issues; Shermonica Austin about School and storm issues; Sharon Calhoun about Sketches; Representative John Knight about sales tax on food; Roberta Watts about State Government; Rev. Ernest Colvin of the Greater Hope Church; and others.. I worked into the night.
EPILOGUE - Victor Hugo said, “Nothing is more powerful than an idea whose time has come.” This may be a bit of an overstatement, but an idea whose time has come certainly has a unique power of its own. Taking sales tax off food just may be an idea whose time has come.
Index of Sanders' Senate Sketches
