Bradley attorney Bruce Ely was quoted in Bloomberg Law on a new fair tax proposal that could potentially show up on the 2020 ballot in Alabama. A state legislator has developed a plan that would end sales, use and income taxes in Alabama and replace them with a flat-rate consumption tax on goods and services of just over 8%. The idea resembles fair tax proposals that have been offered in other states and nationally, but so far, no state nor Congress has enacted the policy.
The idea is interesting but doesn’t look likely to pass, said Ely. The policy would put Alabama out of step with the income tax policies of the federal government and 45 other states, he added.
“This is really something that should be enacted at the national level first, then by the states, if at all,” Ely said.
The uncertainty about how it would affect businesses financially could also hinder business support for the amendment, he explained.
The complete article, “Alabama ‘Fair Tax’ Proposal May Get Hearing in 2020” first appeared in Bloomberg Law on July 24, 2019.