Tuesday, April 14, 2009

A cool cup of water . . plus tax.

There will be a gathering of the Alabama religious community Thursday, April 16, at 11:00 a.m. on the steps of the Alabama State House in Montgomery to show support for legislation which will remove the state sales tax on groceries.

To review the issue briefly, the State of Alabama is one of only two states which fully taxes the sale of groceries. That means that those Alabamians who are in the lowest twenty percent in income, pay approximately eleven percent of their income in sales tax on groceries. Those who have the highest income pay about four percent of their income.

To put it another way, those Alabamians who do not have enough money to purchase all of their basic needs are paying eleven percent of their income in sales taxes for groceries. If their after income tax annual income is twenty thousand, then up to $2200.00 is paid in sales taxes on groceries.

So looking at the monthly budget it looks like you have $1700.00 to work with.

Rent: $500.00
Power: 200.00
Util. 50.00
phone: 50.00

So far you have conservatively used $800.00 of your $1700.00. That leaves $900.00. Should be a piece of cake, right?

If you are trying to work, you need transportation. You have no savings, so you have to try to find a used car to finance. The lowest monthly payment you can get is $200.00 a month on a real clunker that will probably need repairs soon, but it is the best you can do. That leaves $700.00.

Even without making repairs, it still costs money to run the car. Just driving to work and back will cost $75.00. That leaves $625.00.

Pinching pennies you can get by on $500.00 per month for groceries. That leaves $125.00.

$125.00. For medicine, clothing, daycare, car repair, car tags, school supplies and activities, insurance. Can't even think about cable, internet or movies.

So what do you do? Can't buy the car? Then you may not be able to work. Clothes for the kids? They're growing too fast. Cut out medicine? Maybe. No daycare after school? No job. I guess eight and ten are old enough to fend for themselves after school. . . .

I am sure the real picture is much more complicated and much harder.

Those of us who have much more pay the same tax rate. Sounds fair for everyone to pay the same rate, doesn't it? But the choices are different. Where to go on vacation. Whether to cut down on eating out. Whether to have two or three cars. Whether the children go to the expensive summer camp or the church camp. Which clothing brands to buy.

Not whether to have basic food, medicine or child care.

Many of us consider this and say, "I don't see how $170.00 per month will make that much difference."

We are the problem.

So there will be this rally on Thursday at 11:00 a.m. at the State House in Montgomery to encourage legislators to support this legislation.

Part of being a good neighbor is providing a voice for those who have no voice. The poor have no voice.

Won't you speak out for them? Hope to see you Thursday. If not, contact your legislator. The contact info can be found on the Alabama arise site below.

For more information on the topic go to http://www.alarise.org/ and http://www.alabamapoverty.org/ and http://www.alfaithcouncil.org/

2 comments :

  1. thanks for the info; a letter has been sent to my rep. $500/mo. for groceries would be a dream; don't think i've ever spent that much per month for my entire family!

    the reduced rate grocery/drug item tax in florida was a real help when i lived there; it may seem small to some, but to those of us "living tightly" it is a great help.

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  2. I rally hope that they can get this passed. It was a shock to move to KY and realize taht you do not pay sales tax on food here. It does make a difference too.

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