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Food Costs Rising, Wages Stagnant, Grocery Tax Must Go

April 15, 2008

According to this Associated Press article, food costs are rising the fastest they've risen in 17 years.

"The U.S. is wrestling with the worst food inflation in 17 years, and analysts expect new data due on Wednesday to show it's getting worse...U.S. food prices rose 4 percent in 2007, compared with an average 2.5 percent annual rise for the last 15 years, according to the U.S. Department of Agriculture. And the agency says 2008 could be worse, with a rise of as much as 4.5 percent."

In addition, according to this AP article, income for wealthy Alabamians has shot up consistently.

"The study ["Pulling Apart: A State-by-State Analysis of Income Trends," by the Center on Budget and Poli­cy Priorities, a nonprofit based in Washington] shows that the wealthiest  20 percent of families in Alabama have seen their income increase by 42.7 percent over the last two decades, while the poorest 20 percent have seen an increase of only 5.6 percent. That gives the richest 20 percent of families aver­age incomes that are 8.5 times as big as those of the poorest 20 per­cent in Alabama.

Since the late 1990s, the picture has been even more bleak for Ala­bama's poorest families, who have watched their income drop 17.4 percent, while the top 20 percent saw an increase of 9.6 percent."

The Alabama Democratic Party Chair has called out Governor Riley and Republican Leaders on the food tax, and said that anyone opposing the bill, which would drop the sales taxes on groceries, is not serious about real tax cuts or assisting the working class in Alabama.

"Governor Riley and his republican legislative leadership want to cut taxes for the wealthiest of Alabama and leave working families who live week to week at the back of the grocery store checkout line without help. This initiative by Rep. Knight has been worked and perfected over the years and now is the time to get this measure passed. Every Alabama consumer will immediately see increased purchasing power for the most basic necessity - food."

At a time of rising food costs, stagnant wages, and a worsening of income inequality in Alabama, the time to pass this bill is now.  If this isn't a moral issue, I don't know what is.  So far, only a minority of republicans have been willing to do the right thing.  Will the rest of the ALGOP back the rich, or the least of these?

By
bwalden
on April 15, 2008 10:27 AM | | Comments (1) | TrackBacks (0)
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Yesterday Riley came out with a video against the Knight bill which would eliminate sales taxes on groceries.  You can watch it here: http://media.alabama.gov/Video.aspx?v=216&a=112 Riley makes it sound as if families with an income of just over $50,000 year will pay more in taxes, but if you listen carefully, he mentions that only their income taxes will go up. This is very slick and misleading.  Riley must be getting talking points from Karl Rove again. According to estimates by the Legislative Fiscal Office, a married couple earning $100,000 a year with two dependent children would pay $143 more in income tax and $434 less in sales tax. At a time when Alabama's tax revenue has plummeted, being mostly based on regressive and cyclical sales taxes, and with the current budget shortfalls being the result, not to mention that we've got crumbling schools, pothole ridden roadways, a Medicaid shortfall, and more, it's amazing how repubs like Riley and the rest of them can say with a straight face that we should be cutting taxes.  Where pray tell will you get the money to make up for the shortfall friends? Is pandering to the right and the rich more important than doing what is right for the state? And Governor, need I remind you that it wasn't too long ago that you proposed the largest tax increase in Alabama history?  Your remarks are unsurprisingly hypocritical.

Posted by: bwalden Author Profile Page on April 15, 2008 4:18 PM

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