Alabama Senate committee delays vote on flat income tax

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MONTGOMERY, Ala. (AP) – An Alabama Senate budget committee delayed a vote pushing for a flat state income tax.

The committee on Wednesday held a public hearing for a bill that would propose a constitutional amendment creating a flat income tax for individuals and corporations.

The proposal would require both voter and lawmaker approval.

The proposal would cut the personal income tax rate to 2.75 percent from 5 percent and lower the corporate income tax rate to 4.59 percent.

The bill would also eliminate certain exemptions.

Senate sponsor Bill Hightower says he wants to simplify the state tax code so that tax returns fit on a 3×5 index card.

Hightower says the impact to state tax revenue would be neutral.

Some say doing away with deductions and credits would harm retirees and low-income families.

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