The Alabama Republican Party's executive committee tabled a resolution calling on state legislators to grant tax relief during its biannual meeting at the Riverchase Galleria's Hyatt Regency in Hoover on Saturday.
The resolution offered by Alabama Policy Institute president and CEO Stephanie Smith, also a party executive committee member, was tabled on a voice vote after a motion from Tuscaloosa County's Don Wallace.
The resolution was co-sponsored by Jefferson County's Sallie Bryan, Tyler Thrasher and Joel Kimbrough, Shelby County's Diane Caldwell and Lyle Reynolds and Chilton County's Renee Powers.
Smith offered the following response to the executive committee's decision:
It was disappointing to see the ALGOP Executive Committee table a resolution entitled "Alabama Lawmakers Should Grant Alabamians Tax Relief" today during their Winter meeting. Alabama’s current 6.5% statutory corporate income tax rate is among the highest in the Southeast. Twenty-one states cut their corporate and/or individual income tax rates in 2021-22 and another nine states enacted income tax cuts in 2023; some of those states cut income taxes for the second time in three years. Mississippi and Georgia have both cut individual income taxes and are currently considering further tax cuts. Without enacting statutory rate changes, Alabama will have one of the highest individual income tax rates in the Southeast by the end of this decade.
The argument on the floor that increasing a proposed flat tax rate from 3.95 to 4% because we “need to use round numbers” is an embarrassment. Standing up for taxpayers should be second nature for Alabama Republicans. However, today's actions don't reflect the ALGOP platform or their often-espoused limited government/low tax principles.
API has advocated for the elimination of the grocery tax, the elimination of the overtime tax, the elimination of the business privilege tax, and the reduction of corporate and individual income tax rates. In terms of permanent tax relief measures enacted by the Alabama Legislature over the past five years, until the grocery tax is fully implemented, they do not even offset the gas tax increase approved by lawmakers in 2019. API will continue to stand shoulder to shoulder with legislators who believe in a reduced tax burden on Alabama taxpayers, regardless of their party affiliation.
Resolution:
The Alabama Legislature will begin its fourth week of session on Tuesday and could decide on the future of an overtime tax exemption that is set to expire this year.
Jeff Poor is the editor-in-chief of 1819 News and host of "The Jeff Poor Show," heard Monday-Friday, 9 a.m.-noon on Mobile's FM Talk 106.5. To connect or comment, email [email protected] or follow him on Twitter @jeff_poor.
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