Posted by Alabama is one of two states that fully taxes the sale of groceries. HB274 would remove the state portion of the sales tax (4%) and raise the income tax threshold for all Alabamians. The bill is made revenue neutral by eliminating an income tax deduction that only two other states allow.
Dan at Daily Dixie has posted on it and has the details here.
The House bill is in the House Education Appropriations Committee this morning. The Senate version of the bill, SB 431, is in the Senate Finance & Taxation – Education Committee this morning.
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With no action from the House committee since 2/5/08 and the Senate since 2/26/08, its safe to assume this bill is dead unless everybody who buys groceries and pays income tax starts working on their Legislator
The bills passed out of both committees today. The comments on the al.com site indicate (1) the news flash wasn’t very well written and didn’t completely explain the proposals and (2) there are some incredibly stupid and selfish people commenting at al.com. I’m afraid this plan, which could help most Alabamians with minimal pain for a few, will be DOA because the average voter doesn’t know how to do a real cost/benefit analysis and the demagoguers (if that’s a word) will be out in force. I hope I’m wrong.
Good. Now the job is getting it thru the rest of the grinder, then its proponents will have the job of selling it to the general public who lacks the ability to do a real cost/benefit analysis. This a robin hood bill and should be sold as such.
Wonder if there are any stats on how many itemize their state tax deductions vs. standard deductions by income level? That could be helpful in the sales pitch.
Another big part of the sales pitch is the increase in standard deductions, personal exemptions, and dependent exemptions. The last two benefit every taxpayer (well, okay, the last one benefits every taxpayer with dependents) and help offset any additional tax incurred by removing the deduction for federal taxes.
[...] Some thoughts and observations on the House vote for HB 274 in which Randy Hinshaw (D – Meridianville) has been criticized for voting other legislators’ machines… Duwayne Bridges (R – Valley) has filed a complaint saying that Hinshaw voted Bridges’ machine as ‘yes’ on HB274, contrary to the way Bridges would have voted. Even Speaker Seth Hammett (D – Andalusia) recognized that Hinshaw was wrong on this one, according to Bridges. [...]