Alabama looks at eliminating tax on groceries

BIRMINGHAM, Ala. - The Democratic leadership of the Alabama House says its top goal in the new year will be eliminating the state’s 4 percent sales tax on groceries.

The leaders outlined their plans Thursday at a news conference at a farmers market in Birmingham.

House Majority Leader Ken Guin says removing the sales tax will help families cope with the declining economy and rising food
prices.

The Democratic leaders plan to pay for the $320 million tax cut by eliminating part of the state income tax deduction that Alabama
taxpayers get for the federal income taxes they pay.

Similar legislation narrowly passed the House last spring, but it failed in the Senate by one vote.