2008 Woodie Awards
Tax reform in Alabama points to a much larger need
STAFF EDITORIAL
Issue date: 2/25/08 Section: Opinion
UNFORTUNATELY FOR ALL of us Americans, the nation is going through an economic rough patch.
The current recession we're experiencing (and may continue to experience for some time) is placing equal stress on state governments to stand up and realize that these money troubles are rampant and must be dealt with on all sides of the public sector.
In our state of Alabama, one particular hot topic in this order is the tax system under which we currently operate. And with April only a few weeks down the road, and the Alabama legislature opening its doors to begin the process of tackling our pressing economic crisis, it makes sense that the state tax reform should come up in future sessions.
Why is our tax system further burdening our economic well being, you may ask? We have a flat taxing system, one that provides a particularly regressive amount of money being taken from taxpayers.
Legislators argue on either side of this issue -- some stating that a flat tax is the most efficient way to tax the population evenly, others urging that this is only a strain on those who are not able to provide as much as others
For example, a working class individual in Alabama who makes roughly $35,000 a year (just above the poverty limit) gets taxed the same rate as an upper middle class individual who makes roughly $75,000 a year.
This is a travesty, yet it's part of the Alabama Constitution -- that disorganized, cumbersome mass of paper we call a constitution, anyway -- to collect taxes in this fashion.
The biggest reason why our state legislature puts constitutional reform on the agenda as soon as they enter their respective sessions is because of the need for a simpler, more efficient system of state government, one that may become necessary in order to tackle the pressing issues of our state in a concise and even manner.
Also, it must be mentioned that a certain amount of "fairness" must be abided by the government in any constitutional reform, whether in regard to tax laws or civil issues; this "fairness" is part of the reason why reforming our constitution has been such a sought-after goal of legislators, but also why it has not yet happened. To some legislators, "fairness" constitutes keeping lobbyist groups and corporations happy, adding provisions that enable these groups to slip through loopholes in the laws and escape their economic and social duties. To others, it means providing laws that allow individuals who occupy certain positions in the economic ranks to enjoy kickbacks or other benefits from taxes, regardless of their needs. This latter form of loophole may occur for taxpayers who are at either end of the economic spectrum.
The current recession we're experiencing (and may continue to experience for some time) is placing equal stress on state governments to stand up and realize that these money troubles are rampant and must be dealt with on all sides of the public sector.
In our state of Alabama, one particular hot topic in this order is the tax system under which we currently operate. And with April only a few weeks down the road, and the Alabama legislature opening its doors to begin the process of tackling our pressing economic crisis, it makes sense that the state tax reform should come up in future sessions.
Why is our tax system further burdening our economic well being, you may ask? We have a flat taxing system, one that provides a particularly regressive amount of money being taken from taxpayers.
Legislators argue on either side of this issue -- some stating that a flat tax is the most efficient way to tax the population evenly, others urging that this is only a strain on those who are not able to provide as much as others
For example, a working class individual in Alabama who makes roughly $35,000 a year (just above the poverty limit) gets taxed the same rate as an upper middle class individual who makes roughly $75,000 a year.
This is a travesty, yet it's part of the Alabama Constitution -- that disorganized, cumbersome mass of paper we call a constitution, anyway -- to collect taxes in this fashion.
The biggest reason why our state legislature puts constitutional reform on the agenda as soon as they enter their respective sessions is because of the need for a simpler, more efficient system of state government, one that may become necessary in order to tackle the pressing issues of our state in a concise and even manner.
Also, it must be mentioned that a certain amount of "fairness" must be abided by the government in any constitutional reform, whether in regard to tax laws or civil issues; this "fairness" is part of the reason why reforming our constitution has been such a sought-after goal of legislators, but also why it has not yet happened. To some legislators, "fairness" constitutes keeping lobbyist groups and corporations happy, adding provisions that enable these groups to slip through loopholes in the laws and escape their economic and social duties. To others, it means providing laws that allow individuals who occupy certain positions in the economic ranks to enjoy kickbacks or other benefits from taxes, regardless of their needs. This latter form of loophole may occur for taxpayers who are at either end of the economic spectrum.
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