Riley Proposes Cutting Income Taxes Across the Board

MONTGOMERY, Ala. --  Governor Bob Riley will ask legislators Tuesday to phase in a $200 million-a-year income tax cut that is aimed largely at helping the poor and families with children.

A key provision would raise the income threshold where poor Alabama residents begin paying taxes, currently the lowest in the nation.

Under Riley's plan, by 2011 a family of four would start paying income taxes at $15,000, an increase from the current threshold of just $4,600.

Riley will propose the cut in his "State of the State" address.

His plan was first reported in Sunday's edition of the Montgomery Advertiser.

The paper said the governor will also propose phasing in higher personal and dependent exemptions and standard deductions over five years. The proposal would raise the personal exemption from $1,500 to $2,000 dollars and the dependent exemption from $300 to $2,000.

Neither has been increased since 1935, when the state income tax was implemented.


Information from: Montgomery Advertiser

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