On Wednesday's broadcast of Mobile radio FM Talk 106.5's "The Jeff Poor Show," former Alabama Republican Party chairman and lieutenant gubernatorial candidate John Wahl discussed his proposal to eliminate the state income tax.
"This is very possible," Wahl said. "Florida doesn't have a state income tax, Tennessee doesn't have a state income tax, Mississippi is phasing theirs out, Georgia is phasing theirs out, and if we don't get started on this, we're going to be behind the curve. It's going to put us at an economic disadvantage nationally."
"I think this is both an item and a priority that would give the citizens of Alabama immediate tax relief, but it's also going to help the state recruit more industry, more jobs, and build our economy," he added.
According to Wahl, a change to the state income tax could be achieved by using surpluses, slashing "wasteful spending," and implementing revenue-neutral increases across various taxes.
"This is going to take years, and I think that's why we need to get started, but I think you immediately take any surpluses you have and you put that towards cutting the income tax," he stated. "You also look at cutting wasteful spending in our current departments and agencies. There's not a single government department that doesn't have some waste, and I have been a longtime advocate for setting up an Alabama Department of DOGE. Looking at every single area of government and cutting where we can, and that can all be moved towards cutting the state income tax. I think the final one is that there is going to be some need for revenue-neutral increases in other areas. We'll probably have to raise the sales tax. Some other use taxes."
"That will need to take effect over several years. I see this as probably a six-to eight-year project," added Wahl.
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