Tax policies will set education back

Published 10:56 pm Tuesday, April 19, 2011

It’s a crying shame.  Alabama has moved up in education quality for its students from 49th among states to 25th and is now in grave danger of slipping back.

The real issue is money.  We don’t have money for school books, teacher supplies, professional development, school libraries, etc.  We are increasing class size and firing teachers.  We are effectively cutting teachers salaries through increases in health insurance and retirement.

Some corporations making big money in Alabama don’t pay any corporate income tax at all.  In fact, some 1761 companies doing business in Alabama made more than $413 billion in 2008 without paying one red cent in corporate income tax.  Yes, that’s $413 billion with no income tax paid.  It’s a crying shame.

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In 2008, almost 2,000 companies in Alabama reported to the IRS that they made $5 million or more.  Can you believe that not one of them paid one nickel in Alabama income tax.  Yes, big money made but no tax paid.  It’s a crying shame.

In 2008, a family of four that made just above $21,201 paid $423 in Alabama income tax.  Twenty one thousand dollars is not enough even to live on.  Still, those families paid state income tax.  Yet, thousands of corporations making over $5 million a year paid no taxes.  It’s a crying shame.

We are on the verge of slipping back to the education basement.  If these corporations paid just half of what they should, we would not go back.  In fact, we would be moving forward, rising beyond the middle of the pack rather than sliding down to the back of the pack.  It’s a crying shame.

We could capture some of the taxes by just requiring combined reporting on income tax returns just like U. S. government.

That is, have corporations combine the income from all their subsidiaries and related corporations.  That way they don’t claim they are paying rent or royalties to another corporation which is really themselves.

We must do something.  We must do something now.  We cannot allow these gross injustices to alter our children’s future without a fight.  If you and I allow it, then the crying shame is ours.