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One Last Chance for Food Tax Bill
   posted 8:20 pm Thu May 08, 2008 - Montgomery, AL
   reporter: Jeremy King      posted by: Jeremy King
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Supporters of a bill that would eliminate the four-percent state sales tax on food have one more chance to convince opposing lawmakers to approve it.

The bill's sponsor in the State Senate, Hank Sanders, D-Selma, thought he had enough votes to bring the bill up for consideration and approval Thursday.  But he fell one vote shy.

For a while, it appeared the measure was dead.  "It's doing something terrible to children, doing something terrible to seniors," an outraged Sanders said of the Senate's failure to formally consider the bill.

Those opposed to the bill said the measure, in its current form, would actually increase the federal tax burden on many Alabamians.  "This would have cost a lot of people in my district a lot of money," Senator Jabo Waggoner, R-Vestavia Hills, said.  "It would have cost a lot of people in the state money."

The bill's supporters said the tax burden would only increase for the wealthiest of Alabamians.  But those opposed said the burden would impact middle-class taxpayers as well.

Despite heated debate in the Senate chambers, lawmakers began to huddle around each other's desks.  If a compromise could be drawn up, they said the bill stood a chance of approval on May 19, the only remaining meeting day of the legislative session.

"There's some talking going on and some thinking and negotions, so I just wanted to bring you up to date," Waggoner later announced from the Senate floor.

Senators said the compromise could include a measure that would ensure the federal tax burden would not grow on any taxpayers, regardless of income.  Several senators also want to attach a measure to the bill that would call for re-appraisals of property taxes every four years.  Currently, property taxes are re-appraised each year.

Any eleventh-hour compromise stands a decent chance of approval.  Even senators who were the most ardent in their opposition to the food tax elimination said they would vote for a revised bill if a compromise is reached.

If the bill is approved, the measure would go before voters for the final say before the tax repeal would take effect.

It was unclear if a revised bill would call for the tax to be repealed immediately or gradually.

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ABC 33/40 Talkback: One Last Chance for Food Tax Bill
Dunmovyniv
This measure did not just remove a tax. In it's rejected form, it disallowed the federal tax deduction on state income tax.

Slight of hand to shift the burdon, from all taxpayers to a few.

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