Eliminate the State Individual Income Tax Deduction for Payment of Federal Income Taxes
Issue Overview: This is a proposed amendment to the Constitution of Alabama of 1901, to eliminate the state income tax deduction for Federal income taxes for individual taxpayers; to increase individual income tax standard deductions, personal income tax standard deductions, personal exemptions, and dependent exemptions; and to eliminate the state sales tax on food. This legislation would increase income tax revenues by $345 million, while reducing sales tax revenues by $320 million annually. Business owners will be hardest hit by the repeal of the Federal income tax deduction.
NFIB Position: NFIB members voted 94 percent to oppose the repeal of this tax.
Issue Status: HB 274 was introduced by Rep. John Knight (Montgomery).
What to Do: Talk to your legislator and urge them to oppose this legislation.
