Alabama Food Tax Bill

Food Tax Misses the Mark by One Vote

The Food Tax Bill fell one vote short of the total needed to be considered by the House of Representatives. The bill gained steam, winning the votes of one Democrat and two Republican members.

For a copy of yesterday’s vote, click below.

May 5, 2009 Vote Count

Add comment May 6th, 2009

What’s that about necessity and invention?

Matt Rourke / AP

It’s true, with sharply rising food prices, folks are attending auctions, complete with fast-talking auctioneers, instead of heading to their local grocery stores to do their weekly shopping. Check out this recent msnbc.com article, “Thrifty shoppers ‘Sold!’ on grocery auctions”.

Here’s a peek.

“The popularity of the auctions — which sell leftover or damaged goods from supermarkets, distribution centers and restaurant suppliers — comes at a time when people are stretching their grocery budgets by using more coupons, buying inferior cuts of meat, and choosing store brands over national brands.

The economic downturn, paired with the worst food inflation in nearly 20 years (grocery prices spiked in 2008 before easing in January and February), has caused a “seismic shift” in consumer behavior, said Brian Todd, president of The Food Institute, an industry information service.”

For the full article, click here.

Add comment April 9th, 2009

Score – State of Alabama 0: Big Business 21 Million

Did you know that under certain conditions, a business owner making $21 milion in revenue in three states, including Alabama, doesn’t owe any Alabama income taxes on the $21 million earned? Not possible you say? Here’s how…

A business owner may file his (or her) $21 million in business income ($7 million in three states) on a personal state income tax return. He may fully deduct the near $6.9 million required in federal income taxes on the total income, from the mere $7 million made in Alabama. Plus, he may also deduct his personal exemptions and itemized deductions, roughly $1.4 million. After so doing, our taxpayer has creatively adjusted the $7 million made in Alabama to a negative $1.2 million in taxable income. So, what does he now owe the State of Alabama – $0 – not one single cent!

We know, it sounds like a bad riddle. Remember the ones…a train leaves point A at 2 a.m…

To read Knight’s press release outlining the loss of millions in dollars of state income tax revenue, click here.

Add comment April 7th, 2009

Knight’s Grocery Cart Challenge

Knight's Grocery Cart

Many argue that the savings realized from removing the state’s 4% sales tax on groceries is so meager that the plan is not worthy of consideration. But, when there are constituents who, after working 80-90 hours per week, are left with roughly $200 a month, (after paying the rent or mortgage, buying gas, paying the car note and insurance, and writing checks for the electricity and water) to feed a family, every little bit counts!

To drive this point home for those who object to the need for grocery savings, Rep. Knight, attempted to use a $50 budget to purchase enough groceries to feed a small family for a week. Take a look at the contents of his cart, as outlined above. What do you think? Could you and your family live off of this for seven days? Would it be healthy, over the period of a year?

In a document released to newspapers across the state today, Knight challenges those who oppose HB116 to also attempt to feed their families on a $50 budget this week, and then return to the House Chamber and vote against the legislation.
“I challenge the members of our Republican Caucus, who contend that a savings plan for 92% of our citizenry is an unfair tax increase, to head to their local grocers this week with $50 for groceries; then, come back and vote against this bill. I dare the 44 to feed their families with only canned vegetables and cheap meat, and dismiss potential savings as insignificant by distorting the issue to save millions of dollars for creative tycoons, those most able, but least willing to pay their fair share.”

While this example may seem extreme, there are working families in our state, who do not qualify for government food assistance programs and manage to make it spending roughly $2500 per year on food. (That’s like spending $50 per week on groceries.) Some must turn to local food banks and church pantries for help. Think they could use an extra $100 that could be saved from the elimination of the grocery tax? We do.

To read Knight’s editorial, click here.

Add comment April 6th, 2009

Common Ground?

Question: What does the disapperance of state-supported cancer care in Nevada have in common with the fight for the removal of the food tax here in Alabama?
Answer: A shared struggle for folks in the middle class to survive despite the odds.

Watching “60 Minutes” tonight, we ran across this report on a growing crisis in Nevada’s healthcare system. While there is no obvious connection to our food tax fight, we were reminded of the theme that run’s central to this struggle: a fair shot for the working poor, folks living in the crack – too poor to thrive in a system designed for the rich…too rich to qualify for life-saving support services reserved for the poor.

The Clinic Is Closed

Watch CBS Videos Online

Add comment April 5th, 2009

Three Strikes – But We’re Not Out

The food tax bill was dealt another blow yesterday, when it again failed to receive enough votes to even be considered by the Alabama House of Representatives. A united House Republican Caucus has not wavered in its support of big business interests over working families.

Representative Knight vowed that he would continue working to bring the measure before the body. But in another good-faith effort, he committed to House Republicans that he would appeal to the House leadership not to put the bill at the top of their next agenda.

Republican members insist that they are working on a counter proposal that will be introduced next week. However, it is suspected that the measure only offers a grocery-tax rebate to filers making less than $21,000 per year, which would again overlook many struggling middle-class families making more than $20,000 per year.

To view Thursday’s vote, click here.

Add comment April 3rd, 2009

Taxing the Poor

We invite you to watch “Taxing the Poor,” a 2008 Emmy Award winning show by PBS, for outstanding analysis of a business news story. This piece premiered last year and chronicles Representative Knight and the many years of struggle in the fight to change Alabama’s tax system and remove the sales tax on food.

Click here to watch, “Taxing the Poor”. Enjoy!

Add comment March 31st, 2009

Get the Facts!

Welcome to the Alabama Food Tax Blog. This web log will be updated regularly to inform and educate Alabamians as the Food Tax Bill advances in the Alabama Legislature.

If passed by the legislature and approved by the voters, House Bill 116, sponsored by Representative John Knight will remove the state’s 4% portion of the sales tax on food.

We invite you to visit www.alabamafoodtax.com to get the facts, and learn how this legislation can impact you or your family. We’re glad you dropped by; come again soon!

Add comment March 30th, 2009