Alabama shoppers could see savings under a proposed cut to the sales tax on food
MONTGOMERY, Ala. (AP) — Alabama lawmakers on Tuesday advanced a series of tax cuts, including a 1% reduction on the state sales tax on food, as lawmakers in both parties said families are being hurt by soaring grocery prices.
The four Republican-sponsored bills total about $192 million in tax cuts, most of which comes from the proposed 1% cut to the grocery tax. Another bill would allow people 65 and older to withdraw more money from retirement accounts without paying state income tax.
'Today we have the opportunity to reduce taxes on just about everyone in the state of Alabama,' said Rep. Danny Garrett, the Republican sponsor of the bills.
The Alabama House of Representatives approved the bills without a dissenting vote, sending them to the Alabama Senate.
The proposed cut on the grocery tax would from reduce the state sales tax on food from 3% to 2%. Lawmakers in 2023 reduced the tax from 4% to 3% in 2023, but an additional reduction to 2% was hinged on budget growth that did not materialize.
The latest bill would reduce the tax to 2% on Sept. 1 regardless of budget growth.
.
The proposed tax cuts come despite uncertainty surrounding state budgets because of possible cuts or changes to federal programs. But supporters said families are being hurt by rising grocery prices now.
'I think this is going to go a long way toward helping our citizens balance their budgets and save money that they preciously need to help raise their children,' House Speaker Pro Tem Chris Pringle said during debate.
Alabama lawmakers for years explored the removal of the entire state sales tax on food, but the efforts faltered because of how much it would reduce education funding. The state's Education Trust Fund is fueled by income and sales taxes. The Legislative Services Agency estimated that the 1% reduction will cost almost $122 million.
Rep. Laura Hall, a Democrat, noted that Republicans created a $100 million school voucher program, which will let eligible families tap state dollars for private school or home school expenses. She said removing the sales tax on food entirely would help all families.
'Food continues to go up, and it is a challenge at best to go to the market,' Hall said.
Representatives also approved a bill to allow people over 65 to tap an additional $6,000 from defined contribution retirement plans without paying state income tax. The bill would exempt the first $12,000 of taxable retirement income. The current exemption is $6,000. The tax cut would cost about $44 million each year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hamilton Spectator
37 minutes ago
- Hamilton Spectator
Appeals court won't reconsider ruling that Trump must pay E. Jean Carroll $5M in sex abuse case
NEW YORK (AP) — A federal appeals court won't reconsider its ruling upholding a $5 million civil judgment against President Donald Trump in a civil lawsuit alleging he sexually abused a writer in a Manhattan department store in the mid-1990s. In an 8-2 vote Friday, the 2nd U.S. Circuit Court of Appeals rejected Trump's petition for the full appellate court to rehear arguments in his challenge to the jury's finding that he sexually abused advice columnist E. Jean Carroll and defamed her with comments he made in October 2022. Carroll testified at a 2023 trial that Trump turned a friendly encounter in spring 1996 into a violent attack after they playfully entered the store's dressing room. A three-judge panel of the appeals court upheld the verdict in December, rejecting Trump's claims that trial Judge Lewis A. Kaplan's decisions spoiled the trial, including allowing two other Trump sexual abuse accusers to testify. The women said Trump committed similar acts against them in the 1970s and in 2005. Trump denied all three women's allegations. In an opinion Friday, four judges voting to reject rehearing wrote: 'Simply re-litigating a case is not an appropriate use' of the process. 'In those rare instances in which a case warrants our collective consideration, it is almost always because it involves a question of exceptional importance,' or a conflict between precedent and the appellate panel's opinion, Judges Myrna Pérez, Eunice C. Lee, Beth Robinson and Sarah A.L. Merriam wrote. All four were appointed by President Joe Biden, Trump's one-time Democratic rival. The two dissenting judges, Trump appointees, Steven J. Menashi and Michael H. Park, wrote that the trial 'consisted of a series of indefensible evidentiary rulings.' 'The result was a jury verdict based on impermissible character evidence and few reliable facts,' they wrote. 'No one can have any confidence that the jury would have returned the same verdict if the normal rules of evidence had been applied.' Carroll's lawyer, Roberta Kaplan, said in a statement: 'E. Jean Carroll is very pleased with today's decision.' 'Although President Trump continues to try every possible maneuver to challenge the findings of two separate juries, those efforts have failed. He remains liable for sexual assault and defamation,' said Kaplan, who is not related to the judge. Trump skipped the trial after repeatedly denying the attack ever happened. He briefly testified at a follow-up defamation trial last year that resulted in an $83.3 million award. The second trial resulted from comments then-President Trump made in 2019 after Carroll first made the accusations publicly in a memoir. Kaplan presided over both trials and instructed the second jury to accept the first jury's finding that Trump had sexually abused Carroll. Arguments in that appeal are set for June 24. The Associated Press does not identify people who say they have been sexually assaulted unless they come forward publicly, as Carroll has done. ___ Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
40 minutes ago
Man convicted of killing 2 people outside bar to be executed in July
TALLAHASSEE, Fla. -- A man convicted of fatally shooting a man and woman outside a Jacksonville bar as part of an attempted revenge killing has been scheduled for execution in Florida under a death warrant signed Friday by Republican Gov. Ron DeSantis, the eighth this year. Michael Bernard Bell, 54, is set to die by lethal injection July 15 at Florida State Prison near the city of Starke. Bell was convicted in 1995 and sentenced to death for the murders of Jimmy West and Tamecka Smith. In December 1993, Bell spotted what he thought was the car of the man who fatally shot his brother earlier that year, according to court records. Bell was apparently unaware that the man had sold the car to West. Bell called on two friends and armed himself with an AK-47 rifle, authorities said. They found the car parked outside a liquor lounge and waited. When West, Smith and another woman eventually exited the club, Bell approached the car and opened fire, officials said. West died at the scene, and Smith died on the way to the hospital. The other woman escaped injury. Witnesses said Bell also fired at a crowd of onlookers before fleeing the area. He was eventually arrested the next year. Bell was later convicted of three additional murders. He fatally shot a woman and her toddler son in 1989, and he killed his mother's boyfriend about four months before the attack on West and Smith, officials said. Six other executions have taken place in Florida this year, with a seventh scheduled for June 24, all by lethal injection.
CNBC
40 minutes ago
- CNBC
Trump approves U.S. Steel merger with Japan's Nippon after companies sign national security agreement
President Donald Trump issued an executive order on Friday approving U.S. Steel's merger with Japan's Nippon Steel, after the companies signed a national security agreement with the U.S. government. Trump opposed U.S. Steel's controversial sale to Nippon in the runup to the 2024 president election, as Republicans and Democrats have leaned into protecting U.S. companies against foreign competitors. But Trump started softening his opposition to the takeover after assuming office, ordering a new review of the deal in April. President Joe Biden had blocked U.S. Steel's sale to Nippon during his final days in office, citing national security concerns, despite Japan being a close ally. Trump has avoided calling the deal an acquisition or merger, describing it as a "partnership" in a May 23 post on his social media platform Truth Social. He insisted that U.S. Steel will remain "controlled by the USA" during a speech to workers at one of the company's plants outside Pittsburgh on May 30. U.S. Steel made clear it would become a "wholly owned subsidiary" of Nippon North America under the terms of the merger agreement in an April 8 filing with the Securities and Exchange Commission. Trump's description of the deal as a "partnership" caused confusion among investors and union leadership. The president told U.S. Steel workers that Nippon will be a "great partner." The Trump administration is currently engaged in trade talks with Japan as investors eagerly await signs that the U.S. will strike deals with key partners that avoid steep tariffs. Trump told the steelworkers that Nippon had agreed to keep U.S. Steel's blast furnaces operating at full capacity for a minimum of 10 years. The president said the deal would not result in layoffs and promised there would be "no outsourcing whatsoever." He said workers will receive a $5,000 bonus. Trump announced that he was doubling U.S. tariffs on steel imports to 50% during his remarks to U.S. Steel workers. Those tariffs went into effect on June 4.
