An editorial in the Birmingham News yesterday made an astonishing conclusion. First, they talked up how the state was able to have record growth without raising taxes.
Campaign rhetoric? Sure. But it’s also true.
More and better-paying jobs, coupled with people spending more money on cars, groceries, clothes, electronics and the like, mean more taxes flowing into state coffers.
But then they come to the conclusion that Alabama can’t provide basic services as long as we pay the least taxes per person in the country.
Alabama can’t grow its way out of all of its problems. Despite this past year’s uncommon growth - the long-term average growth in the Education Trust Fund is 5 percent, and it’s much lower for the General Fund - many state agencies still provide only bare-bones services. That’s because what Alabama raises per person in combined state and local taxes is a little more than two-thirds of the U.S. average.
I can agree that the state government needs a sustainable source of revenue to provide services that the government exists to provide. I’m not so Libertarian that I think the state should do away with taxes — I like having roads, schools, and libraries as much as the next guy. But the claim that we must tax at a rate comparable to other states in order to provide government services is false.
Alabama’s legislature needs to alter the tax system so that it is more equitable, but it doesn’t need to raise the amount of taxes the average citizen pays. Maybe owners of timber property, which accounts for 71% of the property in Alabama, should be paying more than 2% of the total property taxes. Maybe we should end the Alcohol Beverage Control idea which has cost the state $54 million so far this year. I bet releasing all of the prisoners convicted for nonviolent drug crimes would help reduce the $373 million spent by the DOC so far this year.
In short, if the government is having trouble providing basic services, maybe they should start cutting out some nonessential services like their Neighborhood Pothead Removal Service. And if they’re short on tax money, then they need to redo the tax system instead of relying on the income taxes of poor, working families who barely make enough to live on or the sales taxes of poor working families trying to buy groceries.