Daily Archives: November 18, 2007

Rich people who probably live in Mountain Brook in favor of regressive sales tax

1 cent sales tax increase would make Birmingham’s rate highest among big Southeastern cities – al.com

Ten percent sales tax, including food? Sounds great to people who don’t actually live in Birmingham and who have lots of money:

“Increasing costs on businesses, on citizens, isn’t taken lightly,” said Charles McCrary, the chief executive of Alabama Power. “I don’t like it, but we have to do something, and doing something takes dollars.”

Now, I don’t know for certain that McCrary lives in Mountain Brook. He might live in Vestavia, or Shelby County. I’m quite certain he doesn’t live in downtown Birmingham. Of course, Larry Langford lives in Fairfield, which already has a ten percent sales tax.

As the headline says, this would be the highest sales tax rate for a major city in the southeast. (The only cities that come close are in Tennessee, at 9.25 percent, but Tennessee doesn’t tax wages so most people don’t pay income tax.) Of course, that won’t last, because raising sales taxes that high will guarantee that Birmingham won’t remain a major city for long. Hoover Metropolitan Area, here we come!