Poor Families in Alabama Are Hit Harder by the Income Tax Than Those in Most Other States
Alabamas 1999 income tax threshold the income level at which families begin paying income tax:
Ranking among 42 states with income taxes
For two-parent families of four: $4,600.
For single-parent families of three: $4,600.
Alabamas 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $423.
For families of three with incomes at the poverty line ($13,290): $343.
For families of three with minimum-wage earnings ($10,712): $218.
For families of three with incomes at 125% of poverty line ($16,613): $513.
For families of four with incomes at 125% of poverty line ($21,285): $603.
Alabama has consistently taxed families with incomes well below the poverty line.
Alabamas tax threshold for families of four has not changed during the 1990s. Taxes owed by a family with poverty-level income increased between 1994 and 1999.
In 1991, a family of four owed tax when its income exceeded 33 percent of the poverty line. By 1999, Alabamas tax threshold dropped to 27 percent of the poverty line.