|
Alabama Grocers Association Supports HB 274; SB 431 the Tax Fairness Amendment
FACTS ON HB 274; SB 431 – the
Tax Fairness Amendment ·
HB 274 and SB 431
will eliminate the 4% state sales tax on food. ·
Alabama is one of
only 2 states that still tax groceries with no rebates.
·
The Alabama
Legislative Fiscal Office estimates that this legislation would save consumers
more than $320 million per year. ·
On food, savings
in state sales taxes each year would amount to about $125 for a single man, $256
for a middle-aged couple with no dependents, and about $440 for a middle-aged
couple with two school-age children. ·
HB 274 and SB 431
will expand the standard deduction to $10,700 for all couples and index it to
inflation. Middle-income Alabama
couples now have a standard deduction of only $4,000 – the same it has been
since 1982. ·
HB 274 and SB 431
will expand the deduction for adults from $1,500 to $2,200 and the deduction for
children from $500 to $2,200. ·
HB 274 and SB 431
will raise the annual income threshold at which a family of four starts paying
state income taxes from $12,600 to $20,000.
·
HB 274 and SB 431
will remove the state deduction for federal income taxes. ·
Alabama is one of
3 states that give a full deduction for federal income taxes.
Only Alabama, Louisiana, and Iowa still offer this deduction.
· According to the Alabama Legislative Fiscal Office, the income tax portion of HB 274 and SB 431 plan would cause 68% of all state tax filers to pay fewer taxes. Only the top 1/3 of taxpayers would pay additional taxes because of the loss of the deduction. ALABAMIANS
WILL HAVE THE CHOICE TO EITHER SUPPORT OR OPPOSE THIS BILL ON THE NOVEMBER
BALLOT.
|
