ThinkSouth -- a weblog of the Center for a Better South

8.09.2006

Alabama paper lauds eliminating exemptions

The Anniston (AL) Star ran a great column by Prof. Hardy Jackson on July 30 about the ideas in the Doing South study that we thought had been posted but had not. So without further adieu, here's a pearl on the value of eliminating exemptions from among the many thoughtful gems in Jackson's commentary:
One of the important things about this book is that instead of pounding readers with theories and plans, it carefully lays out the problems and points to alternatives that might or might not work in a particular state. Solutions are left to those "thinking leaders" for whom the book is intended.

What [author Sarah Beth] Coffey suggests is that legislatures should "broaden the sales tax base" by eliminating exemptions that serve targeted audiences rather than the needs of the state as a whole. In other words, cut out special-interest sales tax breaks so that more sales are taxed. This would give states additional resources with which to work and enable legislators to lower the tax on most sales so that the system is fairer. Thus, while some would find themselves paying more taxes, the majority would see sales taxes go down and state services improve.

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