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Last Update: 11/14/2006

Dear Lawmaker,

You can do something to help your low- and middle-income constituents with children. The Knight Plan will help families with children, both by leaving more money in their pockets and by providing $290 million in new funding for education.

  • 1,650,000 Alabama income tax returns report an income less than $50,000. That's 73% of the returns. The Knight Plan offers this group an average tax cut of $197 to support their families.
  • 70% of Alabama sole proprietors had total income below $50,000 in 1998.
  • Only 610,000 tax filers make more than $50,000.
Annual income % of all tax returns Number of tax filers Change in AL income tax (avg.) Change in US income tax (avg.)
less than
$15,000 		31% 680,000 -$156 -0-
Annual income % of all tax returns Number of tax filers Change in AL income tax (avg.) Change in US income tax (avg.)
$15,000
to
$30,000 		26% 570,000 -$285 -0-
Annual income % of all tax returns Number of tax filers Change in AL income tax (avg.) Change in US income tax (avg.)
$30,000
to
$50,000 		19% 410,000 -$141 -0-
  • In this group, 62% will get a tax cut and 29% will pay more.
Annual income % of all tax returns Number of tax filers Change in AL income tax (avg.) Change in US income tax (avg.)
$50,000
to
$75,000 		12% 260,000 Varies Varies
  • A family of three making up to $63,300 will get a tax cut.
  • A family of four making up to $71,100 will get a tax cut.
  • 51% of this group receive a tax cut averaging $246.
  • 43% of this group receive a tax increase averaging $352.
Annual income % of all tax returns Number of tax filers Change in AL income tax (avg.) Change in US income tax (avg.)
$75,000
to
$100,000 		6% 130,000 $392 -$80
  • In this group, 18% get a tax cut and 78% get an increase.
Annual income % of all tax returns Number of tax filers Change in AL income tax (avg.) Change in US income tax (avg.)
$100,000
to
$200,000 		4% 100,000 $1,360 -$349
Annual income % of all tax returns Number of tax filers Change in AL income tax (avg.) Change in US income tax (avg.)
greater than
$200,000 		2% 40,000 $11,688 -$4,359

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For more information:
Arise Citizens’ Policy Project
P.O. Box 612 · Montgomery AL 36101
Email: kimble@alarise.org
Phone: (334) 832-9060

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