Alabama is now ‘tax free,’ as other states lag behind

By Johnny Kampis | Watchdog.org

CULLMAN, Ala. — Congratulations Alabama, you’re tax free!

Sort of.

Monday marked the day the nonprofit, nonpartisan Tax Foundation considers the Yellowhammer State tax free, based on average state and federal income tax rates. Sadly, although it took more than three months to get to this point, Alabama is just the fifth state to do so. Louisiana was first, arriving at “tax freedom day” March 30. Mississippi got there Monday.

Connecticut and New Jersey won’t reach tax freedom day until May 9. The national tax freedom day — when the average American has earned enough to pay his or her taxes — will occur April 21, or 111 days into the year.

To show you how the country’s tax structure has grown, consider that tax freedom day in 1900 would have theoretically occurred Jan. 22, when the average income tax rate was just 5.9 percent.

You’ve paid your taxes, now work for yourself the rest of the year — so to speak.

Reach Johnny at johnny.kampis@franklincenterhq.org.