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Monday, August 18, 2003
State Crises Forcing Tax Foes to Reverse Policy Stance
With states facing around $100 billion in shortfalls, many tax cut foes are being forced to reconsider their opposition.
Alabama Tied in Knots by Tax Vote (washingtonpost.com)
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In a stunning subplot to the fiscal crises roiling the states, Alabama Gov. Bob Riley (R) -- who for three terms in Congress boasted that he never voted for a tax increase and was elected governor on a promise not to raise taxes -- is proposing to raise state taxes by a record $1.2 billion, eight times the largest previous increase and almost twice what is needed to close a $675 million budget deficit.
Seizing Alabama's crisis as an opportunity to right historic wrongs, he says the state should act to improve schools funded at the nation's lowest level per child and to lift the tax burden from poor people, who pay income taxes starting at $4,600 a year for a family of four while out-of-state timber companies pay $1.25 an acre in property taxes. The changes would move Alabama from 50th to 44th in total state and local taxes per capita, he says.
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Posted by John S. Irons
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