With inflation at its highest in 40 years and record gas prices caused by the Biden Administration’s reckless policies, Alabama families need a break now more than ever.
I am proud to say that the Alabama Senate stepped up to the plate in a major way in recent weeks to answer that urgent call, passing $160 million worth of annual tax cuts for hardworking Alabamians, small businesses and retirees across our state.
The Senate began the 2022 legislative session with this tax cut package as a top priority, and – thanks to the diligence and hard work of my colleagues – we were able to pass these bills quickly and efficiently.
Sponsored by Senator Dan Roberts (R-Mountain Brook), SB 152 successfully blocked what would have amounted to a $87.7 hike in state income taxes as a ramification of federal COVID relief monies. Hardworking Alabamians needed relief from the pandemic, and SB 152 ensured that people in our state were not unjustly penalized for accepting that relief.
Next, HB 391 received final passage and will eliminate Alabama’s minimum business privilege tax levied on small businesses. This annual $23 million tax cut for Alabama’s small businesses was sponsored by Representative Steve Clouse (R-Ozark) and Senator Tom Butler (R-Madison).
HB 162 and HB 163 were both carried in the Senate by Senator Arthur Orr (R-Decatur). HB 162 allows up to $6,000 of taxable retirement income to be exempt from state income tax for individuals who are 65 years of age or older. This amounts to a $28 million annual cut in taxes for Alabama retirees. Meanwhile, HB 163 provided an additional $17.23 million in annual tax cuts for low-income Alabamians and some retirees.
Finally, HB 82 enacted several significant relief provisions for Alabama farmers and small businesses. Known as the Small Business Relief and Revitalization Act of 2022, the Senate companion bill, SB 189, was sponsored by Senator Garlan Gudger (R-Cullman) and derived from the Alabama Small Business Commission under the leadership of Lt. Governor Will Ainsworth.
Thanks to conservative fiscal management by the legislature in recent years, we were able to deliver these much-needed tax cuts to ease the burden on Alabamians without negatively affecting vital government services, such as law enforcement, infrastructure, and education.
The pandemic has impacted livelihoods in my district, and in every community across Alabama, and the Senate is actively working to ensure that the government doesn’t get in the way of relief and recovery for the Alabamians who need it most. We are also looking for opportunities at the state level to mitigate the damage being done to our country at the federal level right now.
As we move forward, the Alabama Senate will continue to practice conservative fiscal governance that puts more money back in the pockets of hardworking Alabamians while building an even stronger Alabama for our children and our children’s children.