Last week, the Alabama House of Representatives passed legislation that, if signed into law, would reduce grocery taxes and increase income and retirement plan tax deductions.
However, those bills will likely mean the expiration of the state's overtime tax exemption, a 2023 effort led by House Minority Leader Anthony Daniels (D-Huntsville).
During an appearance on APTV's "Capitol Journal," Daniels rejected the claim that a percentage grocery tax cut would offer tax relief to a broader population rather than the elimination of income tax liabilities on overtime earnings.
"I would say that's not accurate because folks that are on public assistance don't pay ... taxes on groceries anyway," Daniels said. "So, that is not. This is does not necessarily go and touch everyone. And so I think that they're really misunderstanding the point there because there's a segment of the population that doesn't pay taxes on necessity-item groceries in general that are on SNAP benefits. So there's no taxes taken out. So that's inaccurate. The other piece to that is, Anthony Daniels don't need a cut on the grocery tax, right, from an income standpoint. But there are middle America, middle Alabama and poor Alabama that may need it more so than I would. But is that tax really worth the time?"
He continued, "Or should we be making our investments in other places to drive down costs overall in order to have a bigger impact for that same population that we're trying to reach? And so let's, if we're going to be factual here, let's be factual. The grocery tax itself, I want to see it eliminated, but realistically, I would rather see the costs drop down on the goods and services and create more competition so that it is more of a bang for my buck and a savings for me as an Alabamian."
Jeff Poor is the editor-in-chief of 1819 News and host of "The Jeff Poor Show," heard Monday-Friday, 9 a.m.-noon on Mobile's FM Talk 106.5. To connect or comment, email [email protected] or follow him on Twitter @jeff_poor.
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