Taking sales tax off groceries would be step in right direction

By: Letters to the editor | Opelika Auburn News
Published: December 17, 2008

Taking sales tax off groceries would be step in right direction

I am a member of the United Methodist Church, League of Women Voters, American Association of University Women and Alabama Arise. These non-partisan organizations plus many others are calling on legislators to work together to make Alabama’s tax system fairer as happened when Gov. Bob Riley and Rep. John Knight cooperated to raise the threshold for paying income tax.

Taking sales tax off groceries would be a step in this direction, as would again raising the income at which a family starts paying income tax. The state is already short of funds, so the revenue not received from the poor must come from somewhere else. To say that we can eliminate grocery tax without additional revenue is ignoring the reality of proration.

We’ve heard of “income redistribution.” Alabama’s tax system redistributes wealth upward! Lowest wage earners pay more than 11 percent of their income in state and local taxes while the top pay less than 5 percent. All major taxes — sales, income and property — favor the more well-to-do.

Those with lower income spend a larger proportion of their money on taxable things like food and clothing.

Alabama’s deduction of federal income tax from state income tax is worth little to more than half of Alabama’s taxpayers but reduces state income tax significantly for the rich. We collect income tax on a family income of $12,500 and start taxing at the top rate of 5 percent at $18,500, making this a relatively flat tax.

Homeowners pay property tax at 10 percent of appraised value. Rental property is taxed at 20 percent and is passed on as a part of rent.

Given these facts, does it seem unreasonable to ask families making more than $120,000 to pay more so that all of us can get a break on grocery taxes, especially those having a hard time?

Ruth Autrey Gynther
Auburn