Food Sales Tax Cut Eyed In AL

MONTGOMERY, Ala. (AP) - An architect of Alabama's income tax cut
is proposing an even bigger change that would remove the state
sales tax on food, reduce taxes on low-income Alabamians and raise
taxes on wealthier citizens.
The plan was designed by state Rep. John Knight with the support
of Alabama Arise, an advocacy group for Alabama's poor.
In 2006, Knight worked with Arise and the governor to raise the
threshold where Alabama families of four start paying the state
income tax from $4,600 to $12,600. Now Knight is pushing
legislation to remove the 4 percent state sales tax on food,
increase the standard deduction and personal exemption, and end the
state income tax deduction for federal taxes paid.
At a news conference Thursday with leaders of Alabama Arise,
Knight said his plan would be revenue neutral. He said about 20
percent of Alabamians - primarily those making more than $200,000
per year - would pay more. The rest would pay about the same or
less.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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