About 60 percent of Alabama residents welcomed the New Year with a gift tax, the legislature of Alabama. The state passed a tax cut, the principle advantages of working poor. The provision allows Alabama families making less than $ 12,500, to be free from paying state taxes.
Meaning attributed to the fact that Governor Riley has promised to ask the legislature, the threshold for paying state income rising incomes of $ 12,500 to $ 15,000 in 2007. However, thisAlabama tax cuts for the working poor, about half of the threshold ($ 19,600) use the Mississippi.
"The (2006) tax cut was a big step in the right direction, but was not targeted and the necessary relief for the working class Alabama," Governor Riley said. He said the plan to come, in 2007 90 percent of taxpayers will be extended in Alabama, including most families with adjusted gross income of $ 100,000 per year.
For most taxpayers, the exemption is dependent increasefrom $ 300 to $ 1000 and the standard deduction for couples to be two times greater than $ 7,500. For those taxpayers with adjusted gross income (AGI) of $ 30,000 or more than the standard deduction will remain at $ 4,000. On the contrary, the reductions ranging between $ 4,000 and $ 7,500 for taxpayers with income between $ 20,000 and $ 30,000.
Delighted, the deduction for child also increased from $ 300 to $ 1,000 for families with gross income below $ 20,000 and $ 500 deductionfor families with gross income below $ 100,000, actually a bit 'more money in the pockets of parents Alabama.
The money (approximately $ 60,000,000 per year) in support of this tax provision will be from Alabama Education Trust Fund, the tax provision also eliminates the filing of an estimated 119,000 tax returns and in turn reduces the costs associated with the treatment of state taxes.
"We called it a great first step ... we are part of the road. 'Statea compromise which had a modest amount of money from the education budget, but targeted tax cuts for people who need it most, "echoed Kimble Forrister, state coordinator of Alabama Rise, an interest group for the poor.