State Income Tax Made Simple
Senator Bill Hightower of Mobile proposed legislation to replace the state’s adjustable income tax code with a Simplified Flat Tax. Hightower unveiled a revenue-neutral change to state tax policy that will lower the individual and corporate tax rates significantly, today. The result will be simplified tax returns that can be completed on a postcard and save Alabamians the cost of tax preparation along with reducing the headache of complicated calculations. It will reduce the Alabama personal income tax rate from 5-percent to 2.75-percent, and the Alabama business income tax rate from 6-percent to 4.59-percent. If the bill passes, Alabama voters will be given final say to adopt the changes on the 2016 ballot.