August - Alabama Leads Nation in Low Taxes

September 11, 2008

ALABAMA LEADS NATION IN LOW TAXES

By Senator Ted Little

According to the U.S. Census Bureau, Alabamians pay the lowest taxes in the nation – nobody in any other state in America keeps as much of their hard-earned money in their pockets than the people of Alabama.  That ranking was accomplished by the previous and current Alabama Legislature’s management of state level funding and outstanding oversight in county and local governments as well.  I assure you that I, as your State Senator, am committed to keeping it that way.

Lower taxes means that you keep more of your own money – not money that government takes from you.  Money in your pockets is money that strengthens our economy, creates new jobs, and improves our quality of life.  This is why the Democratic controlled State Legislature stood firm with a $57 million state income tax cut on the federal stimulus rebate checks, and why we created a tax break for families who save for college.  In addition, we passed legislation that will enable businesses with fewer than 25 employees to deduct 150% of the cost of employee health insurance and, employees of those businesses whose salary is less than $50,000.00 per year can deduct 150 percent of any portion of the health insurance premium they pay.  This is a huge tax break for businesses of Alabama and their employees due to the fact that more than 80 percent of the jobs in our state are created by small businesses.  This measure was supported by the Business Council of Alabama and the Legislature agreed.

Furthermore, we maintained our course in pushing legislation to eliminate the sales tax on food and groceries.  Although this measure did not pass in the 2008 session, it will continue to be presented until there is a resolve on this matter.  Eliminating the sales tax on basic, fundamental needs will benefit 80 percent of Alabama families.  Of that 80 percent, 800,000 of those affected are senior citizens, and this tax cut will directly impact their cost of living more than any other group in the state.  Although met with opposition,  keeping in mind that this revenue must be made up in other ways, we are not done with this issue yet.  I encourage each of you to contact me and let me know your position on this matter.

As many of our surrounding states have already concluded, the elimination of grocery sales taxes is not only a fiscally responsible measure but certainly enhances the quality of life for thousands of citizens.  With that said, I will continue to look at other ways to reduce the burden of taxes and government on your life.  

The Legislature must be diligent in always looking for ways to save money and cut waste while investing in our children and our seniors.  And with this accomplished, Alabama can remain a champion of low taxes while remaining mindful of those citizens who are struggling in these uncertain economic times.

Senator Ted Little represents District 27 and can be reached at 1-800-835-4885, 334-242-7865 or tedlittle@mindspring.com.