Alabama
ITEP Statement on Alabama’s Special Election
• By Alan Essig
What voters want—the people who put elected officials in office—matters. Members of Congress should take pause before proceeding with their profoundly unpopular tax bill that the vast majority of voters have said lawmakers should not pass.
How the House and Senate Tax Bills Would Affect Alabama Residents’ Federal Taxes
• By ITEP Staff
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Alabama residents.
National and 50-State Impacts of House and Senate Tax Bills in 2019 and 2027
• By ITEP Staff
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. National and 50-State data available to download.
A Corporate Tax Cut Would Benefit Coastal Investors, Not the Heartland
• By Carl Davis
The centerpiece of the House and Senate tax plans is a major tax cut for profitable corporations that the American public does not want, and that will overwhelmingly benefit a small number of wealthy investors living in traditionally “blue” states. New ITEP research shows that poorer states such as West Virginia, Oklahoma, Alabama, and Tennessee would be largely left behind by a corporate tax cut, while the lion’s share of the benefits would remain with…
Washington Post: For Some GOP Women, the Ultimate Women’s Issue Right Now Is the GOP Tax Plan
November 20, 2017
However, according to the Institute on Taxation and Economic Policy, Alabama voters may be taking a bit of a risk by assuming that a vote for the GOP tax plan is in their best interest. According to the non-profit, non-partisan research organization, nearly half — 48 percent — of the federal tax cuts would go to the […]
Revised Senate Plan Would Raise Taxes on at Least 29% of Americans and Cause 19 States to Pay More Overall
• By ITEP Staff
The tax bill reported out of the Senate Finance Committee on Nov. 16 would raise taxes on at least 29 percent of Americans and cause the populations of 19 states to pay more in federal taxes in 2027 than they do today.
How the Revised Senate Tax Bill Would Affect Alabama Residents’ Federal Taxes
• By ITEP Staff
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Alabama, 48 percent of the federal tax cuts would go to the richest 5 percent of residents, and 12 percent of households would face a tax increase, once the bill is fully implemented.
Analysis of the House Tax Cuts and Jobs Act
• By Matthew Gardner, Meg Wiehe, Steve Wamhoff
The Tax Cuts and Jobs Act, which was introduced on Nov. 2 in the House of Representatives, would raise taxes on some Americans and cut taxes on others while also providing significant savings to foreign investors.
How the House Tax Proposal Would Affect Alabama Residents’ Federal Taxes
• By ITEP Staff
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to…
State Rundown 10/25: Marijuana Taxes a Bright Spot amid Underperforming State Revenues
• By ITEP Staff
This week in state tax news saw Alaska begin yet another special session, Louisiana lawmakers holding meetings to begin preparing for the state’s looming (self-imposed) fiscal cliff, and Alabama policymakers beginning a study of school finance (in)adequacy and (in)equity. Meanwhile, state revenue performance is poor well into 2017 in many states, though Montana, Nevada, and Oregon are all enjoying modest but welcome revenue bumps from legalized marijuana.
Select State News Coverage of ITEP’s 50-State Analysis of the GOP Tax Proposal
October 10, 2017
The Sentinel: Trump Tax Even in Harrisburg Will Feature Truckers The Columbus Dispatch: 15% of Ohioans Could See Tax Increase Under GOP Plan KGW Portland: Richest Oregonians Benefit Most from Proposed Tax Cuts Raleigh News & Observer: The Racial Wealth Divide Could Grow with Tax Changes Northwest Indiana Times: Hoosiers Would Lose in Trump Tax […]
Benefits of GOP-Trump Framework Tilted Toward the Richest Taxpayers in Each State
• By Steve Wamhoff
The “tax reform framework” released by the Trump administration and Congressional Republican leaders on September 27 would affect states differently, but every state would see its richest residents grow richer if it is enacted. In all but a handful of states, at least half of the tax cuts would flow to the richest one percent of residents if the framework took effect.
GOP-Trump Tax Framework Would Provide Richest One Percent in Alabama with 56.2 Percent of the State’s Tax Cuts
• By ITEP Staff
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Alabama equally. The richest one percent of Alabama residents would receive 56.2 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $501,800 next year. The framework would provide them an average tax cut of $49,830 in 2018, which would…
State Rundown 8/31: Modernizing Taxes is Sometimes a Sprint, Sometimes a Marathon
• By ITEP Staff
Tax and budget debates are progressing at different paces in different parts of the country this week. In Connecticut and Wisconsin, lawmakers hope to finally settle their budget and tax differences soon. In South Dakota, a court case that could finally enable states to enforce their sales taxes on online retailers inches slowly closer to the U.S. Supreme Court.
In Alabama 41.5 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
• By ITEP Staff
A tiny fraction of the Alabama population (0.4 percent) earns more than $1 million annually. But this elite group would receive 41.5 percent of the tax cuts that go to Alabama residents under the tax proposals from the Trump administration. A much larger group, 48.4 percent of the state, earns less than $45,000, but would receive just 4.3 percent of the tax cuts.
Nearly Half of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million Annually
• By ITEP Staff
A tiny fraction of the U.S. population (one-half of one percent) earns more than $1 million annually. But in 2018 this elite group would receive 48.8 percent of the tax cuts proposed by the Trump administration. A much larger group, 44.6 percent of Americans, earn less than $45,000, but would receive just 4.4 percent of the tax cuts.
It’s a Fact: Voucher Tax Credits Offer Profits for Some “Donors”
• By Carl Davis
In nine states, tax rewards gained by donating to fund private K-12 vouchers are so oversized that “donors” can turn a profit. This is the shocking but true finding of a pair of studies released by ITEP over the last year.
State Rundown 8/2: Legislative Tax Debates Wind Down as Ballot Initiative Efforts Ramp Up
• By ITEP Staff
Budget deliberations continue in earnest this week in Alaska, Connecticut, Pennsylvania, and Rhode Island. In South Dakota and Utah, the focus is on gearing up for ballot initiative efforts to raise needed revenue, though be sure to read about legislators nullifying voter-approved initiatives in Maine and elsewhere in our "what we're reading" section.
Trump Touts Tax Cuts for the Wealthy as a Plan for Working People
• By Steve Wamhoff
Unless the administration takes a radically different direction on tax reform from what it has already proposed, its tax plan would be a monumental giveaway to the top 1 percent. The wealthiest one percent of households would receive 61 percent of all the Trump tax breaks, and would receive an average of $145,400 in 2018 alone.
50-State Analysis of Trump’s Tax Outline: Poorer Taxpayers and Poorer States are Disadvantaged
• By Alan Essig
Not only would President Trump’s proposed tax plan fail to deliver on its promise of largely helping middle-class taxpayers, it also would shower a disproportionate share of the total tax cut on taxpayers in some of the richest states while southern and a few other states would receive a smaller share of the tax cut […]
Trump Tax Proposals Would Provide Richest One Percent in Alabama with 49.2 Percent of the State’s Tax Cuts
• By ITEP Staff
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Alabama would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,393,900 in 2018. They would receive 49.2 percent of the tax cuts that go to Alabama’s residents and would enjoy an average cut of $83,090 in 2018 alone.
Trump’s $4.8 Trillion Tax Proposals Would Not Benefit All States or Taxpayers Equally
• By Matthew Gardner, Steve Wamhoff
The broadly outlined tax proposals released by the Trump administration would not benefit all taxpayers equally and they would not benefit all states equally either. Several states would receive a share of the total resulting tax cuts that is less than their share of the U.S. population. Of the dozen states receiving the least by this measure, seven are in the South. The others are New Mexico, Oregon, Maine, Idaho and Hawaii.
Scripps News Service: Money Diverted from Public Schools?
June 26, 2017
All the programs basically work this way: Individuals and businesses make cash or stock donations to scholarship granting organizations. The organizations award scholarships to qualifying families with K-12 students, primarily children in failing public schools or whose families’ income meets the state’s poverty threshold. Students can then attend a private or religious school of their […]
State Rundown 5/18: Tax Debate Heat Wave Hitting States
• By Meg Wiehe
This week saw tax debates heat up in many states. Late-session discovered revenue shortfalls, for example, are creating friction in Delaware, New Jersey, and Oklahoma, while special sessions featuring tax debates continue in Louisiana, New Mexico, and West Virginia. Meanwhile the effort to revive Alaska's personal income tax has cooled off.
Investors and Corporations Would Profit from a Federal Private School Voucher Tax Credit
• By Carl Davis
A new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being used as profitable tax shelters by high-income taxpayers. By exploiting interactions between federal and state tax law, high-income taxpayers in nine states are currently able […]
