Capital City Young Republicans

The Alabama House, led by Minority Leader Mike Hubbard (R – Auburn), yesterday opposed a Democrat measure to raise a tax in order to pay for a grocery tax cut. 

“Lowering one tax while increasing another isn’t a tax cut, it’s a shell game,” Hubbard said.  “Republicans support removing the sales tax from food, but it’s Rep. Knight’s method of paying for it that we oppose.  Our constituents deserve better than Robin Hood representation.”

Hubbard referred to a bill sponsored by House Government Appropriations Committee Chairman John Knight (D – Montgomery) that would replace the state sales tax on groceries by repealing the state tax exemption for federal income taxes.  The net result, according to Hubbard, would be one group reaping most of the benefits while another group absorbs all of the pain.

Approximately one-third of taxpaying families in the state would see their taxes increase under the Democrat plan and small businesses organized as S-corporations or LLCs would experience substantial increases at a time of national economic uncertainty.

Another issue, Hubbard said, is that Knight’s plan places a “tax on a tax” by allowing the state to tax income that was paid to the federal government as income tax.

“When Democrats begin taxing the taxes you pay, things have gone too far,” Hubbard said.  “If this amendment becomes law, thousands, if not millions, of families will be experiencing sticker shock one year from today when they pay their state income taxes.”

Several Republicans attempted to amend the legislation in order to replace the tax increase portion of the bill with Republican-sponsored tax cuts.  Among the amendments offered was one that extended middle-class tax cuts by increasing exemptions and deductions and another that would have limited property tax reappraisals to once every four years.

Democrats voted down each of the Republican tax cut amendments on a party line vote.

During the debate, other Republican caucus members pointed out that illegal immigrants will be beneficiaries of the grocery tax removal because sales taxes are the only taxes that this unregistered and undocumented group pays. 

Democrats don’t think Alabamians are smart enough to take care of themselves. They believe they exist to take money from the rich and distribute it to the poor in the form of government programs. This “Robin Hood” mentality stifles economic growth and impedes the progress of the growth in this state.