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Last Update:
11/14/2006

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Talking points for letters on Arise income tax proposal
2/4/2000
- A progressive income tax is a simple idea: small taxes on small incomes, large taxes on large incomes.
In Alabama, it's the opposite: large taxes on small incomes, and small taxes on large incomes. Arise's
income tax plan is a small step toward reversing that equation. Or. . .
- This bill is just what Gov. Siegelman says he wants: It's revenue neutral. Won't increase taxes - it just
shifts the tax load so that it's fairer. Or. . .
- Arise's proposal helps all Alabama families. It nearly doubles the personal exemption (from $1,500 per
adult to $2,800) and gives nearly ten times the deduction for children (from $300 to $2,800). And the
standard deduction (for families that don't itemize) will go from a maximum of $4,000 to $7,350 per
couple. Or. . .
- "Do unto others as you would have them do unto you." When it comes to income tax, those who have
the least should pay the least. Those who have the most should pay the most. Or. . .
- Two-thirds of Alabamians who file income taxes will pay less. A family of four with an income of
$42,000 will pay $422 less. This is a plan that helps both low- and middle-income families.
Or. . .
- Arise's plan doesn't just help low-income families. A family of four making $65,000 will pay less in
income taxes. In fact, only the top 1% (those making over $238,000 a year) will pay substantially more.
Or. . .
- When Alabama's income tax started in 1934, only the richest 7,000 Alabamians had to pay it. That's
because you didn't have to pay if you only made $3,000 a year. Problem is, we haven't changed our
deductions much since. It's hard to raise a kid on $300 a year any more. Or. . .
- Arise's proposal will remove a tax break that benefits the richest the most and pass the savings on
to families. Right now, the richest 1% (those with an average income of $602,400) get 32% of the $450
million tax break called the deduction for federal income tax paid. The bottom 4/5 of us get less than 22%
of it. By getting rid of that tax break, we can nearly double the deductions for a middle-income family.
Or. . .
- Alabama shouldn't be giving a tax break that gives thousands of dollars to the richest 1% and
gives nothing to the bottom 20%. That's just what the deduction for federal income tax does. It costs the
state $450 million a year. That $450 million could be targeted better to families with children to raise.
Or. . .
- Gov. Siegelman says he won't allow a tax increase, but that he's willing to listen to a plan for tax
fairness. That's what Arise is proposing. It lowers the state and local tax burden on the poorest fifth from
about 11.5% of their incomes to 9.7%, while it increases taxes on the top 1% from about 3.6% to 4.3%. It's
just a small step toward fairness, but it will mean a lot to families struggling to make ends meet.
Or. . .
- When a poor mother follows the rules and gets a job -- even a low-paying one -- Alabama taxes her
deeper into poverty. Arise's proposal will allow her to spend $50 a month more on the critical needs of
her children. Or. . .
- Alabama has the lowest income tax threshold in the country. A family starts paying income tax when
its income reaches $4,600 a year. Under Arise's plan, a family of three will start paying income tax at
$18,900 a year. A family of four will start paying at $23,200. Alabama will go from worst in the country to
one of the ten best. Or. . .
- Where are all those people who opposed the lottery because it was a tax on the poor? Arise has
proposed a plan that will remove income taxes from families below the poverty line. Every church in the
state ought to endorse this proposal.
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