Alabama now has become the only state with an income tax threshold below one-half of the poverty line. Every other state that taxed the incomes of the poor in the early 1990s has reduced or eliminated this tax burden. Alabama stands alone in its failure to act.
In too many states, the poor and near-poor who are working to join the middle class are instead being taxed right back into poverty. For a family in poverty, a few hundred dollars is a lot of money.