Holmes Pre-Files Bill To Establish Fair Tax

State Rep. Mike Holmes (R-Wetumpka) has pre-filed legislation to eliminate Alabama’s traditional income tax and sales tax system and replace it with a system of taxation based on consumption.  TPI initially reported Holmes’ tax plan in June.

“For too long, Alabamians have been burdened by a tax system that picks winners and losers in a never-ending maze of tax exemptions, deductions and credits,” Holmes said.  “A system that is fair treats everyone identically by taxing them at the same rate when buying new goods or purchasing services.”

Holmes’s bill, known as the Alabama Economic Freedom Act, would repeal current state income and state, county and municipal sales tax levies and instead place an 8.03% tax rate on every purchase of new products and services. The tax would be collected by merchants at the point of sale.
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