Tax Reform

Taxes are a tool used to promote the common good. They provide the funding for education, child care, Medicaid, mental health care and other public infrastructure that improves everyone’s quality of life. But Alabama’s outdated tax structure fails to raise enough revenue to support these services, which holds our state back from realizing its full potential.

Alabama’s upside-down tax system also taxes many struggling families deeper into poverty. Low-income families pay twice the share of their income in state and local taxes on average that top earners do. Making that problem worse, Alabama is one of only three states with no tax break on groceries.

Arise has been a leading proponent of tax reform in Alabama for decades, and our analysis and advocacy were crucial in the enactment of a state income tax cut for families in poverty in 2006. Our research continues to show the range of benefits that Alabama would reap by untaxing groceries, ending large tax breaks for rich households and big corporations, and taking other steps to rebalance and modernize its tax system.

Fact Sheet

A tax on survival: Grocery tax policies in America

Food takes a much bigger bite out of the household budget for low-income families than for richer ones, and sales taxes on groceries thus hit harder at lower incomes. In recognition of this fact, most states either have exempted groceries from state sales taxes entirely or have devised ways to help offset grocery taxes for low-income [...]
Issue
Tax Reform
Date
June 24, 2011
Author
Chris Sanders
Fact Sheet

Teamwork for the common good

If you talk to a low-income Alabamian about the state's tax system, you're liable to hear two things. One is a boast that the state has some of the nation's lowest taxes. The other is a complaint that, nevertheless, the person pays too much in taxes. The statements may sound contradictory, but both are grounded in [...]
Issue
Tax Reform
Date
May 27, 2011
Author
Alabama Arise
Fact Sheet

A sense of scale: Small businesses in Alabama

Lawmakers often debate how a bill would affect small businesses, but no single official definition of "small business" exists. What are small businesses, anyway? How are they taxed in Alabama? And do small businesses survive or fail because of taxes, or do other factors play larger roles? This fact sheet answers these questions and more.
Issue
Tax Reform
Date
July 20, 2010
Author
Chris Sanders
Fact Sheet

Big piece of a small pie: Alabama’s tax paradox

If you talk to a low-income Alabamian about the state's tax system, you're liable to hear two things. One is a boast that the state has some of the nation's lowest taxes. The other is a complaint that, nevertheless, the person pays too much in taxes. The statements may sound contradictory, but both are grounded in [...]
Issue
Tax Reform
Date
February 16, 2010
Author
Chris Sanders
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