According to a recent article published by WSFA 12, “cheaper food prices are closer to reality in 2023 for Alabama residents as more state leaders get on board with the idea of repealing the state’s 4% tax on groceries.” Alabama is one of three states that still impose a grocery tax. The most recent push to repeal this tax is a result of the Biden administration’s reckless spending initiatives and the 40 year high inflation rates they caused. It should be noted that higher rates of inflation are indicative of higher prices on groceries.
In a recent statement, Alabama Lieutenant Governor Will Ainsworth accuses those “claiming [that Alabamans] cannot sustain the loss in revenues that would result from a grocery tax repeal” of defying “simple arithmetic, [violating] basic common sense, and [opposing] the conservative beliefs and values that guide the vast majority of Alabamians.” Ainsworth cites the record high inflation rates and the state’s $3 billion budget surplus as the principal motivators behind his support for the repeal.
A repeal of Alabama’s grocery tax will serve as an encouraging building block for further efforts to reduce the onerous tax burden imposed on Alabamans. It would ensure that Alabamans can continue to feed themselves and their families despite increases in the prices of bread, eggs, and other staples to a healthy and balanced diet.
Grocery taxes disproportionately affect low-income households that spend a higher percentage of their incomes on groceries. According to a report published by The Alabama Policy Center, “the average family of four spends $1,000 per month on food at minimum. Cutting the 4% state grocery tax would give each family an extra $40 per month or $480 per year.” The repeal of the grocery tax would not only provide Alabamans with the necessary relief they need to overcome the rising tide of inflation but would allow them to keep more of the money they earn.