Who pays low taxes in Alabama?
By Wade KwonAs Alabamians figure out their year-end tax strategies, consider the following …
The state has the lowest tax burden in the nation, based on Census Bureau analysis of the 2007 fiscal year. Gov. Riley considers that a plus in attracting businesses. But lobbyist Paul Hubbert of the Alabama Education Association argues that limited funds keep Alabama lowest in education as well.
Meanwhile, that seemingly light tax load still hits the state’s poorest families the hardest. A study from the Center on Budget and Policy Priorities in Washington shows that households below the poverty line pay more in taxes than those in the other 49 states.
More families are sliding ever closer to poverty because of the highest state unemployment rate in 25 years.
The Legislature raised the threshold in 2007 where families start paying tax. Other states followed suit, keeping Alabama at No. 1. The tax on food is also considered a contributing factor to this dubious distinction.
Is Alabama succeeding or failing based on its taxation?
What matters more to industries considering coming to Alabama: low tax burden or educated workforce? And are they mutually exclusive?
