House Poverty Task Force recommends removing sales tax on food

from AL.com

By BOB JOHNSON

MONTGOMERY, Ala. — An Alabama House committee has issued a list of recommendations for fighting poverty, including eliminating the state sales tax on food.

But House Speaker Seth Hammett said it's a worthwhile goal that will never happen unless the governor and legislative leaders collectively come up with a way to replace the $500 million in tax revenue that would be lost by removing the sales tax on food.

The House Poverty Task Force was appointed by Hammett and has been meeting since last summer.

"Poverty affects all of us, either directly or by raising crime rates, declining neighborhoods and even the state's ability to pay for the needed services such as additional state troopers, or additional funding for public schools," said task force chairwoman Rep. Patricia Todd, D-Birmingham.

One result of the work of the task force is a bill to set up a permanent state commission on poverty. Hammett said he expects that bill to be considered by the House next week.

The task force report included a number of recommendations for reducing poverty in the state. In addition to eliminating the sales tax on food, the panel also recommended:

• that the state develop a way to fund public transportation.

• that medical providers not be allowed to charge people without insurance more than they charge those with insurance.

• requiring that state-funded work force development programs recruit workers from low income areas.

• developing a study on housing needs in the state.

Todd said task force members realize many of the recommendations would require more money than is currently available.

"It will take planning, coordination and years for us to reduce the poverty level in our state, but we must begin now," Todd said.

Hammett said most legislators agree that the sales tax on food needs to be eliminated but have not been able to figure out how to do it since sales tax revenue goes to the state's education budget. He said the governor and lawmakers from both parties will have to figure out how to replace that revenue before an effort to remove the sales tax on food will be successful.