Quote:
Originally Posted by Fat Charlie
What kind of Nazi charges sales tax on food?
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"Alabama is one of only three states (Mississippi and South Dakota are the other two) that tax food for home consumption at the full rate. In Alabama, that can be as high as 11%."
- Sales tax is the major form of tax revenue in Alabama for all levels of government. Where I lived it was: 4% state + 3.5% City + 2% County = 9.5%. Almost nothing was exempt from sales tax - not even food or medications.
- Property tax is the second lowest in the country at an average of 0.48%
- Income tax is technically progressive with rates of 2%, 4%, and 5% but the top rate kicks in at $3,000 in earnings.
At the end of the day it was easy for a high income earner to pay a lower percentage of taxes than the working poor.
Surprisingly though, Alabama is only the 18th most regressive state. (The most regressive is Washington where the bottom 20% pay on average 17.8% of income in state and local taxes, the middle 60% pay 10.9%, and the top 1% pay 3.0%)