MONTGOMERY, Ala. (AP) — Alabama residents and companies paid less in taxes than people and businesses in any other state in the 2007 fiscal year, based on total state and local taxes paid per resident.
Data from the U.S. Census Bureau shows that among the 50 states, Alabama had the third-lowest average state and local tax collections per person as a percentage of personal income. Even taking into account that incomes in Alabama were lower than in most of the country, people and companies here had a relatively low tax burden.
Gov. Bob Riley says relatively low taxes help attract businesses and retirees to the state.
But teachers' lobbyist Paul Hubbert said Alabama's relatively low taxes also limit governments' ability to provide good schools, roads and other services.
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Information from: The Birmingham News, http://www.al.com/birminghamnews
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