Grocery Tax Cut Questioned

PORTLAND, Ore. (AP) - States looking to cut grocery taxes are
running into a serious obstacle: their own desperate need for
income amid the recession.
In Alabama and Mississippi, the issue comes up nearly every year
but has yet to overcome opposition from Republicans, despite their
general support for tax cuts.
The vast majority of states either don't tax groceries, tax them
at a lower level than other purchases or offer a credit to offset
the tax for some residents.
Alabama Arise, an advocacy group for the poor, estimates that a
family of four in that state typically pays $468 a year in grocery
taxes.
Alabama lawmakers are looking at two proposals for cutting the 4
percent tax.
45 states levy a general sales tax, but 30 exempt food to be
eaten at home. Other states tax groceries at a lower rate or offer
credits or rebates, primarily for low-income taxpayers. Only two
states - Alabama and Mississippi - apply their full state sales tax
to groceries without relief for low-income families.
The Grocery Manufacturing Association said it supports the
concept but has not actively campaigned for the cuts.

(Copyright 2009 by The Associated Press. All Rights Reserved.)