Kay Ivey promises tax rebates to help Alabama families

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Kay Ivey

The state’s 2022 fiscal year ended on Friday, and the state of Alabama had over $2 billion it did not spend left over going into 2023. On Monday, Governor Kay Ivey announced that, while she believes these revenues are unsustainable, she will present a plan to the State Legislature where some portion of this historic surplus will be rebated back to taxpayers.

“Last week, we closed out the fiscal year, and I am proud to report to the people of Alabama that thanks to the conservative management of our budgets for the past several years, Alabama’s financial footing is very strong,” said Gov. Ivey in a statement. “Let’s be clear, though: This is the citizens’ hard-earned money, and I thank each and every one of them for keeping our economy rolling and economic activity robust, even in a difficult climate. While our budgets are balanced, we are recording revenues far exceeding normal levels. In fact, these revenues are historic but completely unsustainable. No doubt, this surplus is a direct result of reckless spending by the federal government.”

Some ultra-conservatives have suggested that the state should cut income tax rates or even end the four percent tax on groceries instead of simply making one-time tax rebates. The Governor dismissed what she called “permanent structural change” because of a likely potential downturn in the economy.

“Many predict – and I agree – a potential downswing in the economy is right around the corner,” Ivey continued. “We must ensure both Alabama and her citizens are in the best possible position to weather any future economic circumstances. We all know the bills have got to be paid one day, and we cannot make permanent structural change because of temporary circumstances. Anyone who tells you otherwise is likely looking to score political points – just as our federal government has done with their massive spending.”

Ivey said that she is committed to providing some tax relief to taxpayers before the November 8 general election.

“And while the federal government acts recklessly, we, in Alabama, will be deliberate and thoughtful with our taxpayer dollars,” Ivey said. “I have spoken to folks across the state, and people are feeling the pinch of today’s economy, and I have committed to them that I want to provide some relief to their pocketbooks. As we move through the November election cycle, I will work closely with the Legislature to provide relief directly to the people of Alabama. I will present a plan to the Legislature to allocate these funds in a manner that helps our citizens with the issues that we face today while also considering our children and their future.”

“I do believe that some form of rebates should be considered, but rest assured that every option we are exploring will be focused on the interests of our citizens and keeping our people first,” Ivey concluded.

State receipts go to two different funds: the state general fund (SGF), which deals with non-education expenditures, and the education trust fund. The state anticipates receipts of $2.6 billion in the SGF and $8.2 billion in the ETF.

Ivey faces Libertarian nominee Dr. James “Jimmy” Blake and Democratic nominee Yolanda Rochelle Flowers in the November 8 general election.

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