Joe Turnham: Four percent sales tax on groceries should be removed

Alabama Democratic Legislative leaders recently declared that a top priority in the 2009 Regular Session will be the elimination of the 4 percent state sales tax on food. This same measure passed the House in 2008 and made it to the Senate floor for final passage only to be high jacked by contract lobbyists and die from a lack of Republican support.

A cloture vote in the last hours to bring the measure up died as not one Republican Senator voted to bring it up for a vote. Had the measure passed on that day, the voters of Alabama would have had the opportunity on last November 4th’s Election Day to have voted this referendum up or down.

This legislation is revenue neutral since it offsets the loss of the grocery sales tax revenue with the closing of a deduction of federal taxes on your state income tax. The removal of the food tax would benefit 100 percent of Alabama families and the vast majority of Alabamians would receive a net tax decrease.

This legislation has even greater resonance in 2009 as our national and state economy enter a severe recession and many Alabama citizens are losing jobs and families are under tremendous financial strain. Virtually every mainstream economist says that simultaneous tax cuts and stimulus packages are needed in this down turn economy. This Democratic priority of a grocery sales tax removal accomplishes this goal.

This action would immediately put more purchasing power into the hands of every Alabama consumer in the grocery store giving them greater ability to buy milk, bread, cereal and baby formula. The removal of sales tax would spur food sales and more economic activity at the retail level.

Local food banks have reported increasing requests for food assistance from a greater diversity of East Alabama citizens in the past several months. Local churches and ministries say that many families are seeking assistance for the very first time. This proposal by the Democratic Leadership goes to the heart of the matter by empowering the most vulnerable among us to have more access to food.

The arguments against this measure based on removing of the federal tax deduction ring hollow because every person that is affected by the lost deduction gets the sales tax savings. In this economy it is important to prime the retail dollar pump. With state and federal revenue flat or falling, any revenue neutral policy enactment that jumpstarts economic activity while helping the hurting citizens of our state ought to be given top priority.

Food insecurity for many Alabama citizens is growing. In the most prosperous nation on earth we are now experiencing what many poorer countries have felt for years. America is too great to allow any citizen or family to feel vulnerable about having enough food to eat.

Now is also a great time to emphasize our need for healthier diets and great nutritional responsibility by tackling obesity and diabetes exacerbated by poor lifestyle and dietary choices. It is my personal hope that this sales tax break will give weighted credit to the purchase of fresh fruits and vegetables many of which are grown and produced right here in Alabama and that it will discourage the purchase of highly processed junk foods.

At this critical time in our state and nation it is imperative that we develop bipartisan cooperation on these vital public policy issues. Our country faces what may be its greatest challenge since the Great Depression of the 1930s. Greater food security for families should be a top priority of Democrats, Republicans and Independents! Support removing the sales tax on food.

Joe Turnham is Chairman of the Alabama Democratic Party.