February 7, 2022

Alabama Arise: Eliminating State Grocery Tax Would Make Life Better for Alabama Families

ITEP Work in Action

Two bills in the 2022 regular session would end the state grocery tax while protecting school funding. The graph below shows how millions of Alabamians would benefit. Untaxing groceries quickly and responsibly would boost economic and food security for all Alabamians.

That means replacing revenue for public schools in a way that doesn’t harm struggling families. The state can protect education funding by limiting or ending its state income tax deduction for federal income taxes (FIT). The FIT deduction is a skewed tax loophole that overwhelmingly benefits rich households.

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