New Study On Alabama Taxation
A report from the Institute on Taxation and Economic Policy state that low- and middle-income Alabamians pay more than twice as much in taxes as a share of their income compared to the state’s wealthiest residents. According to the study, Alabama’s tax system ranks as the 12th most regressive state in the nation regarding taxation. The Alabamians who earn the least – that’s less than $17,000 a year – pay 10 percent of their income in state and local taxes. Alabama is one of only four states with no tax break on groceries. Alabama is also one of only three states to allow taxpayers to deduct every dollar of federal income tax payments on their state income taxes.