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Friday, January 7, 2011 - 1:58pm

A Grocery Tax Could Hit Seniors the Hardest.

The Special Council on Tax Reform and Fairness says groceries should be taxed again along with haircuts and cell phone use. In return income taxes will go down. The proposal needs approval from Lawmakers who will likely face opposition from seniors.

Council President AD Frazier says without a grocery tax, the reform package won't work.
"The G word, we believe that to improve the stability of a tax revenue base we need to re-establish a tax to food for home consumption"

In return income taxes would be reduced by two percent over three years. That, the council argues, would be a wash for consumers who have a job.
Those who make under $50,000 dollars would get a credit. But Georgia's AARP worries that seniors could be hit hardest if the reform package passes.

AARP spokeswoman Kathy Floyd.
"If you're a senior on a fixed income you're not paying income taxes, so you're gonna be paying several hundred dollars in taxes."
House speaker David Ralston says lawmakers are not required to vote on the tax reform package this year.