An Alabama House Committee has approved a bill that will raise almost a half billion dollars by increasing income taxes for wealthier citizens and corporations. The bill lowers the tax burden on lower and middle-income residents.
The House Government Finance and Appropriations Committee voted eight to six to pass the income tax bill. It is the largest single part of Gov. Riley's plan to raise one point two billion dollars in new tax revenue a year.
The new money is to be used to fill a projected $700,000 hole in next year's budget and to provide extra money for future years.
The income tax bill will be considered by the full House Friday.
The committee turned down an amendment by Rep. Laura Hall of Huntsville that would have given lower income Alabama residents a tax credit on their income tax to offset having to pay sales tax of food products.
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