GOP Counter-Proposal on the Grocery Tax

The GOP has unveiled its “alternative” to the Knight bill that would remove the 4% state sales tax on groceries for all Alabama residents, and it is, well, underwhelming.

The GOP plan would provide a grocery tax credit of $300 for families of four earning under $15,000 a year and $260 for families earning between $15,000 and $22,000.  It would provide no relief for families earning more than the poverty level, and it would exclude anyone receiving food stamps.

Just how many families making  less than $22,000 a year don’t receive any food stamps?  Families making up to 130% of the poverty level, or $27,560, are eligible, but it’s estimated that around two-thirds of them actually sign up.  Assuming that’s correct, only one-third of desperately poor families would be eligible for this credit.  And middle-income families can pound sand.

It appears to me that Republican legislators are doing the bare minimum to give the appearance that they actually care about addressing the grocery tax issue.  And I guess that’s good, in a way, as it turns out they don’t know how they’ll pay for their proposal:

…The rebates would cost the state about $19 million annually, [Rep. Paul] DeMarco said.

[House Minority Leader Mike] Hubbard said Republicans are talking to business groups about a funding source.

Wow!  How fiscally responsible of them.

****

Related Posts:

2 Responses to “GOP Counter-Proposal on the Grocery Tax”

  1. Deborah says:

    This issue is so frustrating to me. I’ve contacted my reps, talked to people (ok, one person) who disagrees, and tried to think of what else I can do. But it all leads me – like so much else in this state – to more frustration. But I am an optimist…

    Speaking of frustrated: the old adage “Thank God for Mississippi” might hold true again: http://feeds.dailykos.com/~r/dailykos/index/~3/ys9XdwPzPlI/-Changing-norms-on-gay-marriage

  2. Kathy says:

    Deborah, thank God for Mississippi indeed!

    I don’t know what else to do about the grocery tax issue either. My representative is not interested. He’s afraid he would catch hell from his wealthier constituents if he voted for the Knight bill, even though a “yes” vote would only put the amendment on the ballot. He would, of course, happily vote for this alternative.

Leave a Reply