Tax Cuts

April 3, 2006

 “Today marks a new day in Alabama, a new direction that provides the first significant tax relief in over 70 years here in our state.”

– Gov. Bob Riley

On April 12, Gov. Riley signed an historic tax cut bill that provided Alabamians with the first significant tax relief since 1935.

“Today marks a new day in Alabama, a new direction that provides the first significant tax relief in over 70 years here in our state.  It’s a turning point, and it represents a profound change that will make life easier for so many Alabamians,” Gov. Riley said in remarks at the State Capitol shortly before signing the bill into law.  He was surrounded by three Alabama families with children as he sat at a desk to sign the legislation.

The bill signing was the culmination of a bipartisan effort that began in during his State of the State Address January when Gov. Riley called upon legislators to pass a tax cut.  Pointing to the state’s record budget surplus, Gov. Riley posed the question, “If we don’t do it now, when we have a record surplus, then when will we ever offer tax relief?” 

In a year in which Alabama enjoys a $1 billion budget surplus after fully funding every request of K – 12 and higher education, Gov. Riley believed a portion of that surplus should be returned to the hard-working Alabamians who created it.

“The real credit belongs to the people of Alabama who made it clear that they wanted this change.  The people are the ones who made this historic moment a reality.  This tax cut is their great achievement, and I firmly believe that more great achievements lay ahead,” Gov. Riley said.