The Alabama legislature has passed both the General Fund and Education Trust Fund budgets, which include a provision for a $150 tax rebate for single filers.
The rebate, if approved by Governor Kay Ivey, will be distributed later this year
Originally, Governor Ivey had proposed $400 rebates in her State of the State address, emphasizing the importance of returning a fair share of the state’s surplus funds to its citizens. However, due to competing tax cut proposals and the state’s approximately $2.8 billion surplus, lawmakers decided to reduce the rebate amount.
Supporters of the rebates argue that giving money back to the people is a wise decision in the face of inflation. However, critics, like Representative A.J. McCampbell, express concerns over the potential impact of the rebate. McCampbell worries that the money may not reach those who would benefit the most, such as individuals living off retirement benefits or those with insufficient income to file taxes.
The fate of the rebate now rests in Governor Ivey’s hands
Political analyst Steve Flowers suggests that the inclusion of the rebate in the budget is a political advantage for the governor. Flowers believes that even though the rebate may not significantly impact most Alabamians, it presents a positive image for the state and will likely be credited to Governor Ivey.
The rebate is estimated to cost the state around $393 million and would be distributed to approximately 1.9 million tax filers if approved. Citizens can expect to receive the rebate in November of this year, pending the governor’s decision.
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