Left In Alabama

Bill to remove sales taxes from food fails again

by: drg

Wed Apr 01, 2009 at 21:07:21 PM CDT


(Good grief! - promoted by mooncat)

UPDATE:  The grocery tax bill will probably come up again today in the Alabama House.  Call your Representative (334-242-7600) especially if he or she is a Republican.

Today in the Alabama House, the bill to remove state sales taxes from food and replace the lost taxes with a removal of the deduction for federal income taxes from the state income tax failed again.  And again, the Republicans were responsible, justifying it as an increase in taxes on the middle class.  However, this rationale does not explain the role of ALFA in oposing this bill.  At one point, John Knight offered an amendment that would continue the deduction for everyone with an income below $600,000 and the Republicans still rejected it.  What is realy going on? I think I know read on:

drg :: Bill to remove sales taxes from food fails again

The reason ALFA and other big multi-state business interests oppose the bill is that the Alabama code allows them to deduct their entire federal tax bill from their Alabama income taxes.  If a LLC has operations in several states and pays federal taxes on all those operations, their Alabama operation gets to deduct all those other state operation's federal taxes on their Alabama return.  I hear that this actually allows the Alabama operation to show no taxable income for Alabama income tax purposes.  ALFA oposes it because many of the multi-state farming operations apparently do this.

 Now, why don't we hear about this in the Alabama press?  How many of them are part of multi-state corporations that in effect get a free ride on Alabama income taxes?  That is a good questions to ask your local corporate owned news source.

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Where is the press when you need them? Thanks for putting the issue in perspective. (4.00 / 2)
Enough to make a preacher cuss!

You've taught me something (4.00 / 2)

You are way to the right of me on a number of issues, but we find a great deal of common ground on "good government" issues, I think.  Tax fairness can be one of those issues, especially when some of the well heeled are obviously getting favorable treatment through loopholes like this one.  Loopholes that they will fight to the death to keep open.

You say the Republicans voted against the bill again.  Have you heard what happened with the Democrats who DID NOT VOTE on the issue last week?  As I understand it, YES votes from those three Democrats would have been enought to get the bill through last week, even without Republican support. 



Work harder and work smarter!

Why are multi-state farm operations good for America? (4.00 / 3)

Why are multi-state bank operations good for America?

We are seeing the danger of institutions that are "too big to fail", every day.

Why are giant banks and giant farms and giant corporations good for America? That is, America as an entire country, not America as a tiny elite that is capturing most of the national revenue?

Speaking just for myself, I don't think there are enough lamp-posts on Wall Street or on every street in America to string up all them that want stringin' up.

Just sayin.



"The War in Iraq is not the disease. The War in Iraq is a symptom. Arrogance is the disease" - Bill Richardson

Source (0.00 / 0)
What is your source for the John Knight amendment and the Republicans voting it down?

Right here..... (4.00 / 2)
http://www.montgomeryadvertiser.com/article/20090402/NEWS02/904020327

Under the compromise of­fered by Knight, in the first year a single taxpayer making less than $400,000 a year would not lose the federal income tax de­duction and married taxpayers making less than $1.2 million would still be able to deduct fed­eral income taxes paid. After be­ing fully phased in, a single tax­payer making less than $75,000 and married taxpayers making less than $125,000 would still be able to deduct the federal taxes.



I'm not short.  I'm fun size!!

[ Parent ]
ALFA (4.00 / 2)
Sorry to be dense, but what is ALFA?

Alabama Farmers Federation (4.00 / 2)

Somewhere between a farm advocacy organization and an insurance company, with lobbying thrown in for good measure.  Generally, if I hear ALFA is supporting something, I get suspicious.

Link here. 



Work harder and work smarter!

[ Parent ]
thanks. (4.00 / 3)
It doesn't look like they are looking out for the small family farmer, despite the folksy appearance of their website.  I wonder if all their members understand that the corporate big boy farmers are advocating against them.

[ Parent ]
They are doing one good thing this term. (4.00 / 2)

And opposing deregulation of local phone service.  This is being pushed by AT&T.  The Senate has debated it for the last two days.

It would allow phone companies to charge "based on the number of subscribers in an area."  Well, I live in an area without a lot of people - as do most rural people, farmers, etc - so I know what that means for our budget.  And in isolated or mountainous areas, the cell phone access is spotty at best.  We have to drive 5 miles from the house to use the cell.

Alfa's opposing the bill along with Alabama Arise (strange bedfellows indeed!). The AARP is against it too.

Are they enough to thwart the power of AT&T's deep pockets?  We'll know soon.



I'm not short.  I'm fun size!!

[ Parent ]
Wednesday Grocery Tax vote (4.00 / 2)

Here is the roll call of the Wed. vote on the Grocery Tax.

These were the NO votes:

Allen, G. (Cottondale); Baker, A. (Brewton); Ball, M. (Madison); Barton, J. (Mobile); Beck, W. (Geneva); Bentley, R. (Tuscaloosa); Bridges, D. (Valley); Canfield, G. (Vestavia Hills); Clouse, S. (Ozark); Collier, S. (Bayou La Batre); DeMarco, P. (Homewood); Drake, O. (Leeds); Faust, J. (Fairhope); Fincher, C. (Semmes); Galliher, B. (Rainbow City); Gaston, V. (Mobile); Gipson, M. (Prattville); Greeson, T. (Ider); Grimes, D. (Montgomery); Hammon, M. (Decatur); Hill, M. (Columbiana); Hubbard, M. (Auburn); Ison, J. (Mobile); Johnson, R. (Sylacauga); Lewis, B. (Dothan); Love, J. (Montgomery); Mask, B. (Wetumpka); McClendon, J. (Springville); McClurkin, M.S. (Pelham); McCutcheon, M. (Capshaw); McMillan, S. (Gulf Shores); Moore, P. (Pleasant Grove); Oden, J. (Vinemont); Payne, A. (Trussville); Sanderford, H. (Huntsville); Shiver, H. (Bay Minette); Thomas, E. (Oneonta); Treadway, A. (Morris); Ward, C. (Alabaster); Williams, J. (Vestavia Hills); Wood, R. (Anniston); Wren, G. (Montgomery).

I would just point out that Rep. Laura Hall who DID NOT VOTE last week, voted YES this time around. 



Work harder and work smarter!

Good for her! n/t (4.00 / 1)


I'm not short.  I'm fun size!!

[ Parent ]
From what I hear (3.00 / 1)
Hall voted yes twice - and violated Rule 32, which was in effect, in the process.

[ Parent ]
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