GOV. RILEY UNVEILS ECONOMIC PLAN

September 5, 2006

Birmingham – Using the backdrop of a newly expanded industry in Birmingham, Gov. Bob Riley on Tuesday unveiled an ambitious plan to keep Alabama’s economy moving in the right direction by cutting taxes and encouraging economic growth.

The news conference, which detailed the economic and industrial recruitment portion of Riley’s comprehensive Plan 2010 campaign platform, was held at Southside Tube in Birmingham.

“Alabama’s economy is the better than it has been in the history of the state,” Gov. Riley said.  “Unemployment is historically low in every county, both rural and urban, and more than 100,000 jobs have been created in the past four years.  We are pushing the ball down the field at a remarkable rate, and this is my plan to keep the momentum.”

As his major economic goal, Riley wants to cut taxes for Alabamians and create an additional 100,000 new jobs by 2010.

Among the specific items in the governor’s plan are additional incentives to help existing businesses expand and offer employee health insurance, tax cuts for middle-class families and legislation that would change existing law and return property tax reappraisals to a quadrennial basis.

 “The work ethic of these men and women has earned us an international reputation,” Riley said in referencing the Southside Tube employees who attended the news conference.  “Our economic strategy is based on making sure every business in the world knows how hard Alabamians work, and ladies and gentleman, it is working.”

Riley added that the state needs to give some of the coming surpluses back to the people who create them.  “These men and women have created a surplus, and they are on their way to doing it again.  They deserve a portion of that surplus they helped create,” Riley said.

Riley’s proposed tax cuts will ease the tax burden for middle class and working families across the state.  His plan will especially be a help to seniors because it abolishes sales taxes on over-the-counter medicine and cuts taxes on retirement income.

Riley also addressed his opponent’s misleading stance on property tax reappraisals.  “Our opponent has said herself that ‘it is easy for a candidate to stand outside and demagogue’ this issue. Well, she has been standing on the outside for four years, and now, she is the one doing the demagoguing,” Riley said. “I have to follow the law, even those I don’t agree with.  That is why we are going to change the law on annual reappraisals.”

Riley went on to tell the crowd that he will once again push legislation to end annual reappraisals. 

The following is a summary of the Governor’s plan to expand economic growth:

Income Tax Cuts

To build on the 2006 tax cut, Gov. Riley will propose another income tax cut for all Alabama families with incomes up to $100,000.  This tax cut will bring the filing threshold for a family of four to $15,000 and will allow more for personal exemptions, dependent exemptions, and standard deductions.  The proposal will bring tax cuts to more than 90% of Alabama families.

Helping our Seniors

Propose that the first $10,000 of all currently taxable retirement income will be exempt, no matter its source.  Gov. Riley will also remove state sales tax on all over-the-counter medication.

Abolishing the Law Requiring Annual Property Tax Reappraisals

Gov. Riley will once again support and promote a bill abolishing Alabama’s annual reappraisal law.

Helping Small Businesses Succeed

Provide funding for the Small Business Advocacy Office to better serve the needs of small business and existing industry in Alabama.  The Small Business Advocacy office will coordinate and streamline our small business programs to ensure small businesses have the opportunities and services they deserve. Gov. Riley reorganized Alabama’s Office of Workforce Development in a similar way, and now, they are rated as the best in the nation.

Small Business Tax Incentives for Health Insurance

To encourage Alabama small businesses to provide health insurance coverage for employees, Gov. Riley will propose legislation allowing them to deduct twice the amount they pay for health insurance premiums from their state income taxes.  Gov. Riley will also encourage employees of the small businesses to participate in their employer’s health insurance plans by allowing them to deduct twice the amount they contribute toward their health insurance premiums from their individual income taxes.

Expand Incentives to Help Industries Grow

Expand eligibility for incentives to more existing Alabama companies to help them grow their operations.

Alabama Work Opportunity Tax Credit

Establish a Work Opportunity Tax Credit that will provide employers with an incentive to hire people from sectors having a unemployment rate or special needs.

“Back to School’ Tax Credit

Create a “Back to School” Tax Credit that will provide an incentive for adult workers to go back to school to receive skills training in “high growth, high demand, and high paying jobs” as identified by the Alabama Office of Workforce Development.

Improving Roads and Transportation

Once again ask the Legislature to establish a professional Independent Transportation Commission that will govern the Alabama Department of Transportation.

Rural Alabama Initiative

Form a “Rural Action Commission,” similar to the Black Belt Action Commission, that will address the specific needs of the rural areas across Alabama.

Tax Incentives for Rural Alabama

To encourage job creation in Alabama counties where jobs are needed most, Gov. Riley will propose a Targeted Job Creation Tax Credit.

Protect the Right to Farm

Propose “Right to Farm” legislation that protects the right of law-abiding family farms to coexist with suburban growth.

Research and Development Tax Credit

To encourage businesses to increase their investment in research activities and to locate those research facilities in Alabama, Gov. Riley will propose legislation to establish a research and development tax credit.

Expand our Economic Opportunity

Continue to aggressively seek new business opportunities for Alabama companies and every corner of the world.  To do aid in these efforts, Gov. Riley will establish an economic development office in China and India to take advantage of the growing economies of East Asia.  These offices will be a partnership with Troy University, which already has offices in a number of countries around the world. 

####