MONTGOMERY, Ala. — Alabama Senate Republicans, in their legislative agenda announced Thursday, proposed a modest tax cut that would allow more taxpayers to take the maximum standard deduction on their state income taxes.
“It really affects working class Alabamians. The high-income folks don’t get anything on this one. It’s working class and those who are perhaps lower income,” said Senate President Pro Tem Del Marsh.
The bill would increase the adjusted gross income level where jointly filing married taxpayers qualify for the full $7,500 standard deduction from $20,000 to $23,000. The deduction would be lowered as incomes rise. There would be similar changes for single people
Marsh said he estimated the proposal will cost the state $4 million to $6 million. The Legislative Fiscal Office could not immediately provide an independent analysis of the bill introduced Tuesday.
Kimble Forrister, state coordinator for Alabama Arise, a group that works on poverty issues, called the proposal a small but good step.
“It’s not profound. It’s a modest step. It’s a good thing to do for those people,” Forrister said.
The Republican agenda announced Thursday also includes proposals to make child sex trafficking a capital offense; provide incentives for telecommunication companies to improve rural broadband access and establish a process for Medicaid to recover funds from the estates of deceased individuals.