Clarke County Democrat

Our Opinions

Taking state sales taxes off groceries would help many who need helping

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Alabama is one of just three states that collect sales tax on groceries. Our neighbor Mississippi and South Dakota are the other two.

Sales taxes are regressive. Sales taxes cost the poor a larger percentage of their income than people who are middle class or wealthier. It is a shame that people have to fork out taxes to pay for essentials like food.

The issue of removing the state sales taxes from groceries has been debated for years but to no solution because the 4% tax generates nearly $500 million every year for the education trust fund budget.

The issue is back on the table this legislative session and Sen. Arthur Orr, R-Decatur, who is chairman of the State Senate’s education budget committee, has proposed a reasonable solution.

Orr proposes a step phase out that would take one penny off the 4-cent state sales tax on food until it is completely removed. Eligible foods would be those covered by the Women Infants and Children federal program and include basics like milk, eggs, cheese, fruits, vegetables, whole grain bread, canned tuna, cereal and infant formula.

A safety net for the education trust fund would be a pause in the plan if the revenues for the trust fund do not increase by more than two percent over the previous year.

The education trust fund usually grows by two percent and a lot more year over year but there is always the possibility it could stagnate or decline in an economic slowdown.

The education trust fund and the general fund are in good shape right now. The tax revenues for the education trust fund exceeded the budget by about $2.8 billion last fiscal year.

That has fueled talk of a tax rebate for citizens. Gov. Kay Ivey proposed a onetime rebate of $400 per individual taxpayers and $800 for two-income households.

That is generous. We’re sure the onetime appropriation would be appreciated by many but many more will quickly spend it and never know where it went.

We’d prefer to see Orr’s plan to phase out the grocery tax implemented. It will benefit Alabamians — Alabamians who certainly need the benefits — far better.

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