Alabama Tax Reform 2003:  

Myths and False Objections

1.    There’s plenty of money in Montgomery.

·     If so, where is it?  The only unspent money in Alabama are earmarked funds held in  reserve for specific projects.  They cannot be spent for general operating needs or other state programs.

·     State government isn’t just going to stay where it is now if tax reform doesn’t pass.  Things get MUCH worse very soon.  We must have a balanced budget by Sept. 30.

2.    Who needs public education anyway? 

·      It’s easy to complain, it’s harder to do the work.  Education is hard work.

·      Public education is the best human way of advancing a democracy, building a workforce, creating  healthy communities.

·      Public Education is the one of the best hopes that children in low-income families have for escaping poverty.

3.    It just won’t be possible to own property any more in Alabama.

·      Currently, Alabama has the lowest property taxes in the nation.

·      Alabama will continue to have one of the lowest tax burdens, especially in property taxes, anywhere in the United States. We could double our local and state property taxes and still have the lowest property taxes in the nation, and the reform plan won’t come close to that.

·      Lack of education for potential workers and potential businesses’ incoming employee families is a serious problem in recruiting businesses right now.  

4.  Everyone who needs to go to college can get the money.

·     Anyone who thinks this way has not talked to most of the people in Alabama.

5.    If they eliminated the waste, they wouldn’t need any more money.

·        Governor Riley has cut $200 million, and most of that, such as the sale of state cars, is a one-time savings only.

·        There is no such thing as a perfect system, and so the question is how Alabama would get any better by not passing tax reform.

6.    They’re going to raise everybody’s taxes and make it even harder on the poor.

·         No, 65% of us will pay less or the same in income taxes.

·         Only 35% of us will pay more—and for good reason.  We’re paying LESS than our fair share now.

·         The poor may see some expenses go up as they purchase services from those whose taxes are going up, but many will have their income taxes eliminated, so they will come out ahead.

·         Those who will pay more are generally those who make more than $50,000 or more per year and those who own more than $50,000 in property.

7.    Legislators will just turn it all into pork money.

·            It is a danger, but democracy always requires vigilance on the part of those who genuinely care about the public interest, not just their own. 

·            One half of the tax reform bills are actually accountability bills.

·            There will be enormous political pressure on the governor and the legislature to make a real difference with the money—and if they don’t, we should vote them out because the needs and the possibilities will be there.  No more excuses!

8.    Businesses will move out of Alabama because of more taxes.

·         Alabama will still have a very low tax burden, and companies are actually choosing to locate in states with higher taxes because of the higher standard of living found there.

·         We don’t need low road employers who are just out for their own self-interest at the expense of everyone else.

9.      Big landowners still aren’t going to be paying their fair share.

·         It’s true that big landowners will still be getting a really sweet deal in Alabama when it comes to their tax levels, but tax reform moves us closer to fair taxes than we are now.

·         There is a cap of 2,000 acres on “current use,” valuation a classification that provides landowners with major tax savings.  More than 2,000 acres will be assessed at fair market value for tax purposes. 

10.  It’s not all the tax reform we need. 

·      That’s true, but it’s not a reason not to take an important step in the right direction.   Property taxes will still be too low for large landowners, but this reform is a start.  

CHECK THE FACTS! 

We will all benefit from tax reform, and you may even pay less tax!  (Be sure to check the PARCA website below to see what tax reform will do to your taxes.)  

2304 12th Avenue North, Birmingham, AL 35234

(205) 326-6821  Fax: (205) 252-8458