Taxes

The Alabama House Republican Caucus understands that cutting taxes provides a stimulus; especially important in uncertain economic times likes those we are currently experiencing. In order to jumpstart our economy, and to ensure that Alabamians do not experience the same economic troubles as those in other states, the Caucus has proposed a series of much need tax cuts. Among the tax cuts bills included in our endorsed legislative package are:

• Extending Income Tax Cuts to Middle-Class Alabama Families by Rep. Jay Love (R – Montgomery) – Building upon the tax cuts previously proposed by Gov. Bob Riley and pushed by Republican legislators, this plan would bring the filing threshold for a family of four to $15,000 and allow more for personal exemptions, dependent exemptions and standard deductions. Under this plan, 90 percent of Alabama 's families would receive tax relief. The legislation contains a safety trigger to ensure the state budget will not be adversely affected during fiscal downturns.

• Offering Tax Incentives to Small Businesses that Offer Health Insurance by Rep. Jay Love (R – Montgomery) – In order to ensure Alabamians and their families are covered by good, quality health insurance programs, the Caucus once again proposes a tax incentive plan for small businesses that cover their employees. Businesses will be allowed to deduct from their taxes twice the amount they pay for health insurance premiums, and, to encourage participation, employees will be able to deduct twice the amount they contribute toward their coverage.

• Ensuring Property Tax Reappraisals Occur Only Once Every Four Years by Rep. Gerald Allen (R – Tuscaloosa) – For the past several sessions, Republican lawmakers have pushed this legislation, which would change current law and mandate that property tax reappraisals occur no more often than once every four years. Democrats have consistently buried it in committee and thrown roadblocks to prevent its passage.

Allowing Retirees to Deduct the First $10,000 of Retirement Income from Defined Contribution Plans by Rep. Greg Canfield (R – Vestavia Hills) – While participants in defined benefit pension plans are allowed to deduct retirement income, other retirees enjoy no such deduction. This legislation would allow those with defined contribution retirement plans, such as a 401K plan, to deduct the first $10,000 in retirement income they receive.