WWJT

[Theophylact]

Who Would Jesus Tax? A question of some importance in Alabama today.

[M_Six]

Good article. It'll be interesting to see if the state votes with its Christian beliefs or falls back on greed and racism. If history is any indicator, greed and racism will win out. I sincerely hope I am proven wrong.

[Knothead]

HAH!

Oh, you just gotta love those wealthy, well-fed Bible thumpers, when faced with the most consistant and pervasive theme in the Bible...which is to assist the poor!

With an illiteracy rate in the rural areas of about 40%, and people being taxed at the (shocking) $4600 yearly mark, Alabama's "Christian Coalition" intends to simply discredit the firebrand Ms. Hamill's tax proposal by personal attack!

Wouldn't it be great if Alabama, of all places, ignited a revolutionary new tax code? A code where the poor (with an earning base below, say, the $16,000 mark) get a break from the IRS and state tax collector?

How about where wealthy folks, having made their 10 million, then turn around and devoted their considerable earning power to helping those around them? Sorta like, "I got mine, now it's time to help those other guys!"

Hey, Jesus said so!

[Theophylact]

Update: the tax increase was rejected, 2-to-1.

Riley and several leading lawmakers have said they would follow the voters' wishes and make cuts if need be. The governor has said cuts could include releasing 5,000 inmates, ending nursing home care for hundreds of elderly citizens, and curtailing prescription medicines for the mentally ill.

[M_Six]

So much for "the Christian Way".

[Theophylact]

By the way: although Alabamans start paying state income tax a an income of $4500 for a family of four (by far the lowest cutoff in the US), Federal income tax is fully deductible from the state tax. It sure isn't in DC, and I bet it isn't in most other states.

This combination benefits only those with incomes high enough to pay significant Federal income tax.

(I haven't run the numbers because I don't have the Alabama tax forms; but I bet that if you make enough money, you don't pay any Alabama tax at all. Can any Alabaman TechIMOlians confirm or refute this?)

edited later

I was in error about the details; but the facts are bad enough.

When all Alabama taxes are totaled up, the study found that:

• Alabama families earning less than $13,000—the poorest fifth of Alabama non-elderly taxpayers—pay 10.6% of their income in Alabama state and local taxes.

• Middle-income Alabama taxpayers—those earning between $21,000 and $36,000—pay 9.8% of their income in Alabama state and local taxes.

• But the richest Alabama taxpayers—with average incomes of $682,000—pay only 4.9% of their income in Alabama state and local taxes before taking account of tax savings from federal itemized deductions, and only 3.8% after the federal offset.

The study found that Alabama taxes are particularly regressive because the state’s personal income tax actually levies a lower rate on wealthy taxpayers than middle income taxpayers—and therefore only compounds the regressivity of the state’s sales and excise taxes.