Issue: Tax Reform

Push to block Alabama tax break for private school tuition succeeds; Ivey signs bill to create hardship driver’s licenses

By Chris Sanders

Arise members had two big reasons to celebrate Thursday, as Gov. Kay Ivey signed a pair of bills that finalize policy wins related to our organization’s 2018 issue priorities. One law will halt (at least for now) an effort to create a new state tax break for private school tuition in Alabama, while the other will help ease the transportation burden that can result from unpaid court fines and fees.

Arise members win push to stop state tax break for private school tuition

Ivey’s signing of HB 251 on Thursday marked the final step in Arise members’ sucdcessful push to save millions of dollars per year for public schools across Alabama. The bill, sponsored by Rep. Ken Johnson, R-Moulton – originally would have allowed people to use education savings accounts known as 529 plans to receive a state income tax break on money used for K-12 private school tuition. But by the time the bill reached Ivey’s desk, those provisions were nowhere to be seen.

Arise members deserve an enormous share of the credit for blocking that tax break. That proposal would have turned 529 plans – originally designed to encourage long-term college savings – into vehicles to subsidize private schools at the expense of public education. The change would have cost the Education Trust Fund millions of dollars a year.

The tax break easily passed the House and appeared to be sailing toward legislative passage – until hundreds of Arise members and other advocates sounded the alarm, flooding the Senate with emails and phone calls in opposition to the plan. That pressure worked: Last week, the Senate amended HB 251 to remove the language that would have created the tax break for private school tuition. The House quickly agreed and sent the revised legislation to Ivey for her signature.

Hardship driver’s licenses could ease transportation burden for thousands

Another new law enacted Thursday stands to lift employment barriers and expand transportation access for thousands of Alabamians. SB 55, sponsored by Sen. Clyde Chambliss, R-Prattville, will allow the state to issue hardship driver’s licenses to thousands of people, including many who have had their licenses suspended or revoked for convictions unrelated to driving.

Under SB 55, those Alabamians could receive hardship driver’s licenses – allowing them to drive on a limited basis – if they can demonstrate to the satisfaction of the Alabama Law Enforcement Agency that they are not a risk to public safety and cannot obtain other reasonable transportation. People convicted of drunken driving or reckless driving would be ineligible for hardship licenses.

The new law could give thousands of Alabamians a legal way to drive to work, go to doctor’s appointments and fulfill other essential tasks of everyday life. And it represents an important breakthrough in Arise’s work to ease the burden of criminal justice debt on low-income families.

By Chris Sanders, communications director. Posted March 22, 2018.

Alabama Legislature rejects tax break for private school tuition

By Kimble Forrister

Update: Gov. Kay Ivey signed HB 251 into law on March 22 – without the language that would have cost public schools millions of dollars a year. Thank you to all the Arise members and everyone else who helped protect education funding in Alabama!

Great news, y’all: Arise members just helped save millions of dollars a year for Alabama’s public schools! A few weeks ago, we sounded the alarm about HB 251, sponsored by Rep. Ken Johnson, R-Moulton. At that time, the bill included language that would have allowed Alabamians to use education savings accounts known as 529 plans to receive a state income tax break on money used for K-12 private school tuition.

Hundreds of Arise members sprang into action. They flooded the Senate with emails and phone calls opposing this misguided plan to turn 529 plans – originally designed to encourage long-term college savings – into vehicles to subsidize private schools at the expense of public education.

This proposal had been speeding toward enactment – but Arise members helped stop it in its tracks. This week, the Senate amended HB 251 to remove the provisions that would have created a tax break for private school tuition. The House agreed to that change Thursday and sent the bill to Gov. Kay Ivey – without the language that would have cost the Education Trust Fund millions of dollars a year.

This win for public schools across our state couldn’t have happened without our members. It was proof once again that when everyday folks speak up together for what’s right, we can get results. Thank you so much to all of you who helped defeat this proposal, and to all of you who continue to support Arise’s work to build a better Alabama for all.

By Kimble Forrister, executive director. Posted March 16, 2018. Updated March 22, 2018.

Children’s health care takes a back seat as Congress rushes to cut taxes for corporations, wealthy people

By Chris Sanders

Arise Citizens’ Policy Project executive director Kimble Forrister issued the following statement Wednesday, Dec. 20, 2017, in response to Congress’ passage of a tax bill that disproportionately benefits rich people and corporations:

“Congress’ misplaced priorities were on clear display today. Nearly 84,000 Alabama children are about to lose their ALL Kids coverage because lawmakers allowed federal funding for it to expire months ago. But instead of solving that problem, Congress hurried to create a new one by increasing the deficit to give huge tax cuts to big corporations and wealthy people.

“This tax plan is a massive giveaway to the rich at the expense of everyday Americans. Over time, it will raise taxes on tens of millions of families at low and middle incomes. It will increase health insurance premiums for millions of people and leave millions more uninsured in exchange for permanent tax cuts for big corporations. And it will drive up the federal deficit, setting the stage for calls to cut Medicare, Medicaid, education, food assistance and other vital services next year.

“Struggling families shouldn’t have to pay for tax cuts for rich people. And tens of thousands of Alabama families can’t afford for Congress to wait any longer to renew federal funding for the Children’s Health Insurance Program. Lawmakers across Alabama and across the country should commit now to renew CHIP funding before a single child loses coverage and to reject budget cuts that would make it harder for families to make ends meet.”

Congress’ tax plan is still a bad deal for everyday Alabamians

By Chris Sanders

Arise Citizens’ Policy Project policy director Jim Carnes issued the following statement Friday, Dec. 15, 2017, in response to the release of Congress’ revised tax bill:

“At its core, Congress’ tax plan is a massive giveaway to huge corporations and wealthy people at the expense of working families. This bill is bad for everyday Alabamians, and no amount of tinkering at the edges can change that.

“This bill still will raise taxes on tens of millions of Americans at low and middle incomes, while handing enormous tax breaks to the top 1 percent. It still will leave millions more Americans with no health insurance in exchange for permanent tax cuts for big corporations. And it still will drive up the federal deficit, which congressional leaders have already indicated they will use to justify calls for cutting Medicare, Medicaid, Social Security and other vital services next year.

“This tax plan is an ill-conceived rush job, and it’s a raw deal for families across Alabama and across the country. Congress should reject this bill and focus on closing tax loopholes and investing in education, health care, transportation and other services that help struggling families get ahead.”

U.S. Senate tax plan is a windfall for the wealthy at the expense of everyday families

By Chris Sanders

Arise Citizens’ Policy Project policy director Jim Carnes issued the following statement Saturday, Dec. 2, 2017, in response to passage of the U.S. Senate tax bill:

“The U.S. Senate tax plan is a huge giveaway to wealthy households and big corporations, and working families across Alabama and across the country will pay the price for it. Tens of millions of Americans at low and middle incomes will face tax increases, while the top 1 percent will get enormous tax breaks that would make them even richer.

“The Senate plan will leave 13 million more Americans without health insurance in exchange for even larger corporate tax cuts. It also will fuel a soaring federal deficit, which many in Congress likely will try to use as an excuse to cut Medicare, Medicaid, education, housing and other essential services. Those cuts would make it even tougher for everyday Alabamians to make ends meet.

“It’s no wonder Congress shoved this bill through without hearings or extended debate: It’s a raw deal for American families. Small changes can’t fix that problem. Congress should reject this plan and focus instead on closing tax loopholes and investing in education, health care, transportation and other vital services that help struggling families get ahead.”

If you’re rich, the House GOP tax plan is great for you. If not? Not so much

By Chris Sanders

The richest 1 percent of Alabamians would get large tax cuts that would grow even larger over the next decade under U.S. House Republicans’ tax plan, according to projections released Monday, Nov. 6, 2017, by the Institute on Taxation and Economic Policy (ITEP), a nonprofit research organization based in Washington, D.C. Meanwhile, nearly one in five Alabamians – including one in four middle-income taxpayers – would pay higher taxes by 2027 under the GOP plan, ITEP finds.

The plan would add at least $1.5 trillion to the federal deficit, setting the stage for cuts to education, health care and other services, Arise Citizens’ Policy Project executive director Kimble Forrister said.

“These tax cuts would hurt working families and the economy while giving even more money to people who are already wealthy,” Forrister said. “This plan would pave the way for deep cuts to federal funding for Medicaid, education, housing, transportation and other services that help everyday Alabamians get ahead. That’s a harmful path, and Congress should turn away from it.”

Key Alabama findings from ITEP’s study of the GOP tax plan include:

  • The top 1 percent of Alabama earners would receive an average tax cut of $40,990 in 2018. That number would jump to $58,200 by 2027.
  • Nearly one in five Alabamians (18 percent) would pay higher taxes by 2027 under the plan, including 25 percent of middle-income taxpayers.
  • Just 10 percent of the state’s total tax cuts in 2027 would go to the three in five Alabamians who would have incomes of less than $80,090 a year. Their average tax cut would shrink from $320 in 2018 to $180 in 2027.

“Any gains that working Alabamians would get from these tax cuts pale in comparison to the harm they’d suffer from cuts to education, health care and other vital public services,” Forrister said. “Congress should reject these tax cuts for the rich and work to build a better future for all of us.”

GOP tax plan would slash taxes for wealthy people while laying groundwork for cuts to education, Medicaid

By Chris Sanders

Arise Citizens’ Policy Project executive director Kimble Forrister issued the following statement Friday, Nov. 3, 2017, in response to the release of U.S. House Republicans’ tax proposal:

“The House Republican tax plan is an expensive new giveaway to wealthy households and big corporations at the expense of working families. It would offer little or nothing to most Alabamians, and it actually would increase taxes for many low- and middle-income folks.

“This plan would add at least $1.5 trillion to the national deficit – and to pay for it, many in Congress will try next year to cut everything from education and Medicaid to food assistance for struggling families. Those cuts would make it even tougher for hard-working Alabamians to make ends meet.

“Taking from those who have the least to give to those who have the most is no way to build a better economy, a better state or a better world. Congress should reject this tax bill and focus instead on closing corporate tax loopholes and investing in education, health care, transportation and other vital services that help struggling families get ahead across Alabama and across the country.”

More than half of GOP plan’s tax cuts in Alabama would go to top 1 percent

By Chris Sanders

Alabamians with incomes of more than $1 million would get an average tax cut of nearly $116,000 a year under the tax framework unveiled by congressional Republicans and the White House, according to a study released Wednesday, Oct. 4, 2017, by the Institute on Taxation and Economic Policy (ITEP), a nonprofit research organization based in Washington, D.C. One in seven Alabamians would pay higher taxes under the plan, which also likely would lead to cuts to Medicaid and other vital services.

Key state-level findings from the ITEP report include:

  • The top 1 percent of Alabama earners – those who make $501,800 or more – would receive 56.2 percent of the tax cuts going to the state.
  • Nearly half (49.2 percent) of the overall tax cuts that Alabama residents would get under the plan would flow to people with incomes of more than $1 million a year. They would receive an average annual tax cut of $115,900.
  • Just 12.5 percent of the state’s total tax cuts would go to the three in five Alabamians with incomes of less than $57,900 a year. They would see an average tax cut of $190 a year.
  • One in seven Alabamians (14.5 percent) would pay higher taxes under the plan.

U.S. Senate Republicans are considering a proposal to allow the tax cuts to add as much as $1.5 trillion to the federal deficit. That move would lay the groundwork for harmful cuts to services that help Alabamians get ahead, Arise Citizens’ Policy Project executive director Kimble Forrister said.

“These tax cuts would be a windfall for the wealthy at the expense of everyone else,” Forrister said. “This plan likely would force massive cuts to future federal funding for Medicaid, education, housing, transportation and other vital services that help everyday families make ends meet. Congress should reject these reckless tax cuts for the rich and focus on investing in education, health care and other services that help all Alabamians and all Americans get ahead.”

Medicaid funding, public transportation highlight Arise’s 2018 priorities

By Chris Sanders

New Medicaid revenue and creation of a state Public Transportation Trust Fund are among the goals on Alabama Arise’s 2018 legislative agenda. Nearly 200 Arise members picked the group’s issue priorities at its annual meeting Saturday, Sept. 16, 2017, in Montgomery. The seven goals chosen were:

  • Tax reform, including untaxing groceries and closing corporate income tax loopholes;
  • Adequate funding for vital services like education, health care and child care, including approval of new tax revenue to prevent Medicaid cuts;
  • Consumer protections to limit high-interest payday loans and auto title loans in Alabama;
  • Dedicated state revenue for the Alabama Housing Trust Fund;
  • Reforms to Alabama’s death penalty system, including a moratorium on executions;
  • Creation of a state Public Transportation Trust Fund; and
  • Reforms to Alabama’s criminal justice debt policies, including changes related to cash bail and driver’s license revocations for minor offenses.

“All Alabamians deserve equal justice and an opportunity to build a better life for themselves and their families,” Alabama Arise state coordinator Kimble Forrister said. “We’re excited to continue our work for policy changes that would make it easier for hard-working Alabamians to get ahead.”

More than one in five Alabamians – almost all of whom are children, seniors, pregnant women, or people with disabilities – have health coverage through Medicaid. That coverage plays an important role in keeping hospitals and doctors’ offices open across the state, especially in rural areas.

“Medicaid is the backbone of Alabama’s health care system, and we must keep it strong,” Forrister said. “The Legislature needs to step up and approve new, sustainable revenue for Medicaid in 2018. It’s time to stop the annual funding battles and ensure all Alabamians have access to health care.”

Lack of adequate transportation is another major challenge that limits economic growth and erects barriers to daily living for many low-income residents and people with disabilities across Alabama. Arise will push for creation of a state Public Transportation Trust Fund as a step toward closing that gap. A bill to create a trust fund passed the Senate this year and has momentum heading into 2018.

Lottery bill dead, BP settlement bill still alive in Alabama Legislature

By Chris Sanders

A state lottery bill died, returned to life and then died again in the Alabama Legislature this week. The House voted 64-35 Thursday night for an amended version of SB 3, sponsored by Sen. Jim McClendon, R-Springville, that included revenue earmarks for Medicaid, education, and rural and community fire departments. That move came after the House reconsidered its initial 61-37 vote on the bill, which fell two votes short of the 63 votes required to pass a constitutional amendment. However, the Senate on Friday voted 23-7 against concurring with the House’s changes, killing SB 3 for the session.

The House and Senate both adjourned in short order after that vote. The Legislature will take next week off and return Sept. 6 for the 10th of 12 allowable meeting days during the special session. Lawmakers still have not addressed Medicaid’s $85 million shortfall for next year. A state lottery (an issue on which Arise takes no position for or against) would not have generated revenue in time to avert those cuts.

A measure that could help stop the 2017 Medicaid cuts is still alive. HB 36, sponsored by Rep. Steve Clouse, R-Ozark, would use money from Alabama’s BP oil spill settlement to free up $70 million toward Medicaid’s $85 million shortfall. The House passed the bill 91-10 last week. The Senate has debated the bill but has not yet voted on it.

Medicaid provides health coverage for one in five Alabamians, mostly children, seniors, and people with disabilities. Alabama already has cut Medicaid payments to pediatricians and other primary care doctors by 30 percent starting Aug. 1, and even more cuts will follow if lawmakers do not address Medicaid’s funding shortfall.

By Chris Sanders, communications director. Posted Aug. 26, 2016.