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Study finds Ala tax rates high for poor families
By Ala among 13 states with high tax rates for poor families
Montgomery, AL – - A new report on state taxes says an
Alabama family of four living at the federal poverty line owed the
country's highest state income tax.
The study by the Center on Budget and Policy Priorities in
Washington says a family of four earning $21,947 in 2009 owed $468
in Alabama income tax. Alabama is one of 13 states that collected
income taxes from families at the federal poverty line.
The study also found that the income threshold where a family of
four starts paying Alabama's income tax - $12,600 - is the second
lowest in the country. Montana has the lowest.
The executive director of the Arise Citizens' Policy Project,
Kimble Forrister, says Alabama may be called a low-tax state, but
the taxes aren't low for everyone.