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ASEA Responds to Governor Bentley's Revenue Plan

Today Governor Bentley revealed his plan to fix the estimated $702 million shortfall in the General Fund. Bentley says he is the "doctor" of Alabamians who "expect government to operate properly, and the General Fund is not doing that."

His plan includes:


1: Close corporate tax loopholes and require combined reporting for corporations. $20 million.
2: Remove tax credit claimed by certain financial institutions. $1 million.
3: Remove certain credits for insurance premium tax. $25 million.
4: Eliminate municipal utility exemption on public utilities license tax. $47 million.
5: Remove income tax withholding exemption certificates . $12 million.
6: Sales tax on automobiles increased to 4%. $200 million.
7: Rental tax for automobiles increases to 4% from 1.5%. $31 million.
8: Increase cigarette and tobacco tax 82 cents per pack to $1.25. $205 million.

These eight items would bring in $541 million. By unearmarking $187 million from the Special Education Trust Fund, Bentley's proposal would bring in the money needed to address the shortfall.

ASEA applauds Governor Bentley and his plan. After years of state employees suffering the consequences of a broke budget, Big Business will finally have to pay their fair share. Although we anticipate a fight on all the items above, ASEA is thrilled to see real revenue proposed to fund state government and state employees.

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