A Breath of Fresh Air from Alabama by Jim Wallis While the White House and many congressional Republicans seem to believe that the solution to every problem is to cut taxes, there's a breath of fresh air coming from Alabama. Gov. Bob Riley - a longtime conservative Republican - is proposing to raise taxes. Alabama has long had one of the most regressive tax systems in the country. A family of four earning $4,600 a year has to pay taxes - a lower threshold than any other state. Property taxes are the lowest in the nation, benefiting primarily the timber industry in a state where 71% of the land is timber. State sales tax is 4%, but local governments are free to add to it. Many do; in some counties it's as high as 11%, even on groceries. People with incomes under $13,000 pay 10.9% of their income in taxes, while those who make over $229,000 pay 4%. How's that for fair? This spring Alabama, like most of the 50 states, faces a severe budget crisis with a deficit of $700 million. Yet it is obligated by its constitution to have a balanced budget. So on May 19, newly inaugurated Gov. Riley convened a special session of the state legislature, and then delivered a speech to the people of the state. Citing the financial disaster the state faced, he said: "We cannot balance our budget with cuts alone, not unless we are willing to lay off thousands of teachers and cancel all extra-curricular activities, open prison doors and put convicted felons back on the streets, and force thousands of seniors out of nursing homes and take away their prescription drugs." And the governor then went on to propose a tax reform package that included higher property taxes, higher income taxes on the wealthy, and no income taxes on the poorest. The plan raises the threshold to pay income tax for families of four to $17,000 - paying for it in part by raising corporate taxes on the timber industry. He concluded by saying: "I have spent most of my life fighting higher taxes. While in Congress, I always voted against tax increases because I know the hardships they place on a family and on a business. No one wants to raise taxes - especially me. And I don't like being forced to do it now - but I believe we have no other choice." Why the governor's change of heart? It turns out that he is deeply Christian, and realized that his faith had something to say about the budget and tax situation. He was recently quoted by CBS News: "According to our Christian ethic, we're supposed to love God, love each other, and help take care of our poor. And this is a step in the right direction." One of his inspirations was a paper "An Argument for Tax Reform Based on Judeo-Christian Ethics," written by Susan Pace Hamill, a University of Alabama tax law professor. Prof. Hamill took a sabbatical to earn a Master of Theological Studies degree, and in her thesis argued that Alabama's tax system violated moral principles. It was widely circulated, and came to the attention of the new governor. The plan has been approved by the state legislature, and now goes to a statewide public referendum in early September. Alabama's churches, including the Methodists, Presbyterians, Southern Baptists, and Episcopalians, along with Catholic and Jewish leaders, support the changes. The holdouts are the religious right - led by the Christian Coalition. They, along with some state Republican leaders and business organizations, are leading the opposition. I often hear people say that the Bible talks about individual charity and has nothing to say about government policies on budgets and tax cuts. Here's one Christian politician whose ideology has been altered by his faith, and who is now trying to do the right thing. Maybe some of his former Republican colleagues in Washington will get the message. Read more commentary by Jim Wallis at:
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