The World Around You

Thank goodness one of the major Alabama papers has finally highlighted the fact that with the federal tax reduction, most Alabamians will still see a net reduction in taxes even with the Governor’s tax and accountability package in place. The Birmingham News reports:

Almost all married couples and most households with children are projected to get money back, since both the state and federal tax plans increase exemptions and deductions.

The net effect on Alabama taxpayers results from two factors: the greater size of the federal tax reductions and the fact that the Riley plan’s higher state property and income taxes can be deducted when calculating federal income taxes.

“The net cost will be zero to the vast majority of taxpayers, and they’ll be making a huge investment in the state,” said PARCA’s executive director, Jim Williams.

Riley’s spokesman, Pepper Bryars, said the federal income tax reductions provide an opportunity for Alabamians to invest in critical state services, with the federal government replacing the money that would have been taken out of the economy via increases in state taxes.

“What Alabama can do is invest in vital services without drawing additional money out of its citizens’ pockets,” Bryars said. “This is going to be critical to getting people to support the referendum.”

Yes it is, now the key is to take this alnog with the other positive reasons for supporting the plan to the public through every possible venue. With all due respect, I don’t care what the Governor is doing in Germany, he should be here selling this plan. It is going to succeed or fail on his shoulders more than any other’s.