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Alabama Senate panel discusses plan to end state grocery tax, raise sales tax on other items
An Alabama Senate committee took no action Wednesday on a proposal to swap the state grocery tax for a higher sales tax on other items. The panel could vote next week on SB 287, sponsored by Sen. Gerald Dial, R-Lineville. Committee members heard public testimony on the bill Wednesday. Dial’s bill would end the state’s [...]
Report
Earthquake on Goat Hill: How the Alabama Accountability Act passed and what it means
Alabama would provide income tax credits to help subsidize private or religious school tuition for parents of children zoned for "failing schools" beginning this fall if Gov. Robert Bentley signs the plan into law. The House and Senate approved the measure, known as the Alabama Accountability Act, mere hours after it was first introduced on Feb. [...]
Fact Sheet
Ending the state grocery tax and protecting schools
Alabama's tax system is upside down, and the state sales tax on groceries is one reason why. Alabama remains one of only two states -- the other is Mississippi -- with no tax break on groceries. Food costs consume a larger portion of the household budget for low-income families than for those who are better off, so [...]
Fact Sheet
A tax on survival: Grocery tax policies in America
Food takes a much bigger bite out of the household budget for low-income families than for richer ones, and sales taxes on groceries thus hit harder at lower incomes. In recognition of this fact, most states either have exempted groceries from state sales taxes entirely or have devised ways to help offset grocery taxes for low-income [...]
Fact Sheet
Teamwork for the common good
If you talk to a low-income Alabamian about the state's tax system, you're liable to hear two things. One is a boast that the state has some of the nation's lowest taxes. The other is a complaint that, nevertheless, the person pays too much in taxes. The statements may sound contradictory, but both are grounded in [...]
Fact Sheet
A sense of scale: Small businesses in Alabama
Lawmakers often debate how a bill would affect small businesses, but no single official definition of "small business" exists. What are small businesses, anyway? How are they taxed in Alabama? And do small businesses survive or fail because of taxes, or do other factors play larger roles? This fact sheet answers these questions and more.
Fact Sheet
Big piece of a small pie: Alabama’s tax paradox
If you talk to a low-income Alabamian about the state's tax system, you're liable to hear two things. One is a boast that the state has some of the nation's lowest taxes. The other is a complaint that, nevertheless, the person pays too much in taxes. The statements may sound contradictory, but both are grounded in [...]