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LOCAL
NEWS
Tax opponents fight to the finish
08-28-2003
Several groups, mostly nationally based, have come out in opposition to Gov. Bob Riley’s tax plan. These include American Shareholders Association, Small Business Survival Committee, Family Research Council, Eagle Forum, Center for Individual Freedom, Frontiers of Freedom, National Taxpayers Association, Citizens for A Sound Economy, Americans for Tax Reform, American Conservative Union, American Legislative Exchange Council, U.S. Term Limits, Coalitions for America and nationally syndicated radio show host Jim Blasingame
Getting into the local fray early, these groups claim Riley’s plan will place an extra tax of $293.96 on every man, woman and child in the state and the idea that those making under $30,000 a year would not be taxed simply isn’t true - they will be taxed in extra service charges and additional taxes.
The Alabama Cattlemen’s Association Board of Directors went on record opposing the tax package.
Board members stated that the huge increases in state property taxes in the plan is compounded by the fact that local re-appraisals, which are now occurring annually in many counties across the state, are already significantly raising property taxes.
The ACA states, “The proposed tax increase bill also represents a significant change in the right of an individual to determine what you can do with your own poperty. The plan places a 2,000 -acre cap on current use for land used for farming, pasture and forest. This change in government policy could force landowners to selltheir land because of high taxes.”
The Tax Accountability Coalition with Roger McConnell and Charles Bishop, co-chairs, argue that “once voters learn more about the package, such as that it includes taxes on car and home appliance repairs and removes federal deductions,” the referendum will fail.
Bishop said the bill will, “raise your taxes when you pick up your car tags, have a car or appliance repaired, pay your utility bills, pay rental fees.”
According to McConnell, “Alabama Power gets a tax break, but the taxes on our utility bills go up. People who have invested in land rather than the stock or bond markets are being asked to suffer an unduly large tax increase. Some landowners will see their property taxes increased 300 percent, 400 percent and more. So will many farm families. So will most homeowners. In fact, state property taxes will increase on every home valued at $52,000 or more. All of us will pay double taxes on a good portion of what we earn, since the Riley tax hike will no longer allow us to deduct on our state income tax returns, the federal income tax withheld from our paychecks. You will pay taxes on income you never see!”
Americans for Tax Reform, Washington, D.C. have been one of the more vocal groups against the tax bill. They point to the “careless spending” by the state.
They cite $49,892 to pave a track and tennis courts, $1.5 million to improve a football stadium, $700,000 for new tennis courts, $430,000 for a new town swimming pool, $120,000 for non-profits to expand non-publicly owned parks and recreational facilities and $700,000 for existing park renovations.
Other “careless spending” include $10,000,000 for a road and utility work to support a new convention center and hockey arena, over $64,000 for the Alabama Junior Miss Pageant, $1,092,615 for support and maintenance of educational programs in three private schools, $71,292 for the Alabama Sports Festival, $250,000 to refurbish an airport and $200,000 for a farmers market and conference center.
This group also says “on average, Alabama’s teachers are paid more than their neighbors in Mississippi, Florida, Louisiana and Tennessee. In fact, Alabama’s teachers earn more than the average for Southeastern states and are not far from the national average.” They state the average of $39,268.00 is only $8,000 below the national average and it will be the “average Alabamian who will have to pay the cost of raising the salary of teachers” who already make more than the average Alabamians of $32,812.
According to ATR, “Over the last 30 years, Alabama’s student population has dropped by 14 percent. Yet the number of teachers has gone up 42 percent, the number of administrators has gone up 40 percent and the number of principals has gone up 50 percent.” More money throwed at Alabama schools will not fix them they maintain.
The group also says small businesses in the state will be hurt because most of them are taxed at the top personal income tax rate rather than at the corporate rate and under Riley’s plan they will suffer because his plan raises the top rate to six percent.
ATR does suggest outsourcing to save educational money. They cite an Alabama Policy Institute study that notes $807.8 million of the $4 billion education budget for FY 2001-02 was spent on non-educational services. “Overall, the study concluded that outsourcing non-educational services could save up to $21.6 million on transportation services, $60 million on food services and $5.4 million on grounds keeping for total of $87 million.”
ATR also notes that, “According to the National Center for Education Statistics, Alabama’s per pupil spending has increased by 30 percent from 1990 - 2000 compared to the southeastern region’s average spending increase of 19 percent. More notably, the national education spending has increased at only 12 percent for the same time period.” They maintain, “Alabama’s graduation rate was 60.9 percent in 2002, ranking 41 in the country. Yet, states that limited their spending have demonstrated higher graduation rates.”
The Alabama Forestry Association is another group opposed to the Riley plan.
They say the old notion that Alabama is virtually owned by large out-of-state timber companies is totally untrue.
According to the AFA Alabama has 23 million acres of forest, 78 percent of which is in private hands making up 400,000 forestland owners.
According to their figures only 16 percent of Alabama timberland is owned by the forest products industry and six percent by government agencies.
The AFA says big utility companies will see their property taxes rolled back to 2001 rates and frozen at that level for eight years while landowners, homeowners and business owners will see increases.
The large Alabama Farmers Federation also came out opposing the plan. According to ALFA President Jerry Newby there are four facts which should cause proponents to question the plan.
“First, the $1.2 billion tax increase is almost twice as much as the governor says he needs to balance the state’s budgets. Second, the plan lacks the ‘fundamental change’ and accountability measurers the governor said are necessary to move Alabama forward. Third, almost 90 percent of the $1.2 billion tax burden will be borne by individual taxpayers. And finally, there is no guarantee that a single penny from the plan will be spent for the programs the governor says he wants.”
The Alabama Policy Institute has been more moderate and open-minded on the issue. They have issued press releases stating both good and bad points of the proposed plan.
API President Gary Palmer takes issue with some of the proponents claims such as the one stating “85 percent of Alabamians will pay less in combined property and income taxes than they pay now.”
“They (proponents) are saying that 15 percent of the taxpayers in our state will not only foot the entire bill for the $1.2 billion tax increase, they will also have to make up for tax cuts to the other 85 percent. Frankly, I don’t think that is possible,” he said.
He also notes that the Public Affairs Research Council of Alabama, a strong supporter of the tax increase, has “dramatically reduced their estimates of the benefit of the tax increase from their first analysis” published June 25 and the one released July 20.
Palmer says taxpayers should go to the PARCA website, click to the Balch and Bingham personal income tax overview and download the new state tax form instructions and compare it with their 2002 state tax return.
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About Wayne Ruple
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Cleburne News editor Wayne Ruple is a native of Ashville. Before coming to Heflin, he worked for three years as a computer systems manager in Birmingham. Ruple has worked for The Sand Mountain Reporter in Albertville, and was the editor of The Independent in Robertsdale. He has also worked for the Shades Valley Sun, the St. Clair News-Aegis and The Daily Home in Talladega.
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