Will tax changes be in store for Alabamans in 2017?
The Joint Legislative Task Force on Budget Reform spent November and December working on a plan to right Alabama’s financial ship. At these meetings, the committee of 14 legislators—seven from each the Alabama House and Senate—heard presentations about a simplified flat tax plan, the Retirement System of Alabama rate of return, pension reform, overreliance on federal funds, unearmarking funds, and tax credits.
Following the December meeting, WSFA 12 reported on some of the ideas on the table:
- Rollover of agency funding to encourage savings and smarter spending, rather than “use it or lose it”
- Partial lump sum buyout of the pension system to save $4.5 billion over 30 years
- Tax changes to reflect the changing economy, such as with things like online retail, hybrid and electric vehicles, and house-sharing businesses like Airbnb
- Thinking about which tax type Alabama leans on the most—property, sales, or income—when compared with other states
The task force’s next meeting was scheduled for yesterday, Jan. 18. Stay tuned for updates.