Grocery tax

THE ISSUE

Two legislative committees have overwhelmingly approved constitutional amendments that would remove Alabama's 4 percent sales tax on groceries and replace the lost revenue by ending the federal income tax deduction.

It's been years in the making, but finally, voters may be asked to decide whether to eliminate Alabama's 4 percent sales tax on groceries. Committees in the House and Senate voted last week to approve a constitutional amendment that eliminates the tax and replaces the lost revenue by ending the state deduction for federal income taxes paid.

The sales tax elimination has its best chance ever of passage because the revenue that would be lost from the tax - $320 million annually - would be replaced from another source. Replacing the lost revenue means the powerful Alabama Education Association is not expected to block the bills.

Alabama is one of only two states that taxes food purchases. Other states either don't tax groceries or provide a tax deduction for the poor. Advocates of eliminating the tax say the burden on the poor will be eased.

The bills also contain a provision that would raise the threshold at which familes begin paying state income taxes. For a family of four, the threshold would go from the current $12,600 to about $20,000. Again, this is a step in the right direction.

Critics of the sales tax amendment say eliminating the federal income tax deduction from state income tax forms means more middle- and high-income families will pay more in taxes than they save on grocery purchases. Yes, about one in five Alabamians - generally, those making $100,000 or more - will pay more state income taxes, but that is an equitable and fair exchange. Alabama's antiquated tax structure punishes the working poor and places too much of the burden of funding government on their backs.

Sen. Hank Sanders, D-Selma, who introduced the bill in the Senate, began pushing legislation to eliminate the grocery tax 20 years ago. His latest effort got a boost from Alabama Arise, an advocacy group for the poor, which has lobbied tirelessly for the bill.

The identical House and Senate bills must be approved by both houses before the amendment can be placed on the ballot. We urge the Legislature to pass this important change in the way we tax ourselves.