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By The Associated Press

M60o93H7pQ09L8X1t49cHY01Z5j4TT91fGfr Tax Friendly Alabama

Published: Mon, July 07, 2008 - 10:42 am

MONTGOMERY, Ala. (AP) - Alabama can again claim to have the
nation's lowest state and local tax collections per person.
New Census Bureau reports for fiscal 2006 show Alabama's state,
county and city governments collected $2,782 in taxes per person.
The national median was $3,700.
Alabama's state, county and city governments collected $12.8
billion in taxes in fiscal 2006. Their collections were $918 less
per person than the national median. If they had collected the
median, Alabamians would have paid an additional $4.2 billion in
taxes.
The Public Affairs Research Council of Alabama reports that the
state has held the lowest spot for more than a decade.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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WOW! New Mexico is at $29,120?? I would have never expected that figure. But, then again, I was simply stating an opinion about the appearance of a city. I wonder what the population ratio is there as compared to, say, Alabama? I would think that it would be rather sparse given the miles and miles of desert there. This is a good post, The Wife! Way to go!

Posted by Razorsharp on 07/07/08 - 10:32 pm • Report Abuse

All of the states are on the chart. I just gave the top five and bottom five on the tax liability. Using the same method of subtracting their tax liability from their median income, here are six more states by their number on the list, their tax percentage and their median income after their taxes. (12) California 11.5% $38,373.00 (17) Louisiana 11.0% $30,693.00 (29) Mississippi 10.5% $26,479.00 (32) Georgia 10.3% $31,595.00 (38) Florida 10.0% $35,820.00 and (40) New Mexico 9.8% $29,912.00

Posted by The wife on 07/07/08 - 8:30 pm • Report Abuse

Insightful answers everyone! Seems like all of you bring up very valid points. How do we rank next to Mississippi? (I am asking seriously because I truly want to know)Just curious. Lee308 brought up the fact that there was no mention of Florida. How does Florida rank? (again, I am asking honestly) I have lived in Florida and traveled it extensively, and it seems like (I said seems like) that for the most part, they are doing very well. However, looks can be, and usually are very deceiving. I have also been to New Jersey, and from what I can tell, they don’t seem any better off than other places that I have been. However, looks can be deceiving. I will say this, just to add my two cents...Santa Fe, New Mexico was one of the cleanest and seemingly well to do cities that I have had the privelage of visiting. Just my opinion, folks...no offense intended. (trust me, I have almost seen them all)Not sure where they rank...? Monterey, California was also very nice...and seemingly well to do.

Posted by Razorsharp on 07/07/08 - 7:47 pm • Report Abuse

The state has done this as far back as I can remember. Usually the people in Montgomery(the politicians) want something to crow about. They never give you the whole picture because it would make them look bad and usually they and the governor start this crowing a little ahead of asking for a tax increase or election time. If they had collected the median, If we would have had more higher paying jobs, IF A FROG HAD WINGS HE WOULDN’T BE BUMPING HIS you know what, when he hopped. The art of the Illusionist, look over here at this hand not the other one.

Posted by carl on 07/07/08 - 4:30 pm • Report Abuse

Why no mention of Florida? If you rent, no property, grocery, or income tax.

Posted by Lee308 on 07/07/08 - 4:19 pm • Report Abuse

It would be nice if the local media could come up with some kind of investigation about poverty in Alabama and why this state continues to be a leader year after year.

Posted by working4u on 07/07/08 - 3:54 pm • Report Abuse

Median household income is effected in a number of ways. Example-Poverty level declines income levels increase, employment of Seniors are working longer and their income level increases, more or less members of a household are working full time bringing the number up or down, employee pay increases are low. In 2005 Alabama’s poverty level ranked high at #8 in the country. And the same year rank #47 in median household income. New Jersey ranked #48 in poverty and #1 in median household income. Alabama is a big time poverty state. Why so much poverty? You will have to figure that one out. Too many family members maybe? A lot of unskilled or uneducated workers, or maybe a ton of low paying jobs? The jobs are here.

Posted by working4u on 07/07/08 - 3:40 pm • Report Abuse

Interesting facts. I guess the next question in my mind is WHY is our median household income so much lower here?

Posted by Razorsharp on 07/07/08 - 2:53 pm • Report Abuse

Here is the list of the highest per capita income states, their tax burden, and their per capita income after the taxes are subtracted.
District of Colombia 12.5% $54,979.00, Connecticut 12.2% $48,780.00, New Jersey 11.6% $45,605.00, Massachusetts 10.6% $45,878.00, and Maryland 10.7% $43,983.00. Match that Alabama and we will gladly match their taxes.

Posted by The wife on 07/07/08 - 2:45 pm • Report Abuse

On CNN Money.com there is an article written by staff writer, David Ellis. That article was titled,"TAX FRIENDLY PLACES 2007” Mr. Ellis included a chart for the calendar year 2007.
According to the chart, the five States with the highest tax burden are: Vermont, Maine, New York, Rhode Island and Ohio. The five states with the lowest tax burden are: Alabama, Delaware, Tennessee, New Hampshire, and Alaska. If you subtract the amount of the tax burden in each of the listed states, from the per capita income listed for each state, the per capita income would be: Vermont-$32,919.00 Maine-$31,072.00 New York-$40,654.00 Rhode Island-$36,518 Ohio-$32,423.00 Alabama-$31,917.00 Delaware-$39,667.00 Tennessee-$32,906.00 New Hampshire-$40,241.00 and Alaska-$38,740.00 The highest tax burden listed is 14.1% and the lowest is 6.6%. The residents of Alabama pay 8.8% according to the chart. When our income matches those of the higher taxed states, we will proudly pay more taxes.

Posted by The wife on 07/07/08 - 2:35 pm • Report Abuse