Associated Press - April 30, 2010 5:04 AM ET
MONTGOMERY, Ala. (AP) - A new report on state taxes says an Alabama family of 4 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 4 earning $21,947 in 2009 owed $468 in Alabama income tax. Alabama is 1 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 4 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.