On Thursday, the Alabama House of Representatives passed the biggest income tax cut in the state in over a decade.
The bill, introduced by Anniston-Republican and Senate President Pro Tem Del Marsh in January, now heads to the Governor to be signed into law.
SB76 will allow more taxpayers to take the maximum standard deduction, and will save families an average of $21 a year.
The legislation is part of the Alabama Senate Republican Caucus “Fighting for Alabama” agenda, which was unveiled at a press conference in January.
“This is not a tax break for the rich,” Marsh said when he introduced the legislation. “It’s a tax break for working class Alabamians.”
According to the Associated Press, the bill, “would increase the adjusted gross income level where jointly filing married taxpayers qualify for the full $7,500 standard deduction from $20,000 to $23,000. The deduction would be lowered as incomes rise. There would be similar changes for single people.”
Marsh estimates the proposal will cost the state between $4 million to $6 million.
“It is a testament to the Republican Legislature that through smart, conservative management we have been able to guide the state through tough financial times and are now in a place where we can bring tax cuts to the hard-working people of Alabama” added Marsh. “Before the 2017 session started, I began looking at responsible ways to give people a tax cut and I am pleased that we found a way to provide this much deserved break for the people. I will fight for this reasonable tax cut until it is passed by both chambers and is signed by the Governor.