Alabama Lawmakers Will Want to Follow President's Efforts at Tax Reform

The passage of the Big Beautifull Bill this past week was quite a feat for President Donald Trump, particularly with the support of the legislation by narrow margins in both the United States House of Representatives and Senate.

There is a lot of talk of what the new law will bring for the state of Alabama, but we do know the bill will mean workers can deduct up to $12,500 or $25,000 of income for a joint return for the next 3 years for overtime pay. This will also mean that there will be pressure on Alabama lawmakers to revisit the prior exemption on overtime income for state taxes. With the new federal tax break, there will be more incentive to work for tax reform during the next legislative session.

The table was already set to address Alabama’s grocery tax next year. Alabama Governor Kay Ivey just signed into law a reduction of the state tax on food from 3% to 2% effective on September 1st. Because Alabama is one of the few states to still tax groceries the issue will remain on the table until it is completely removed. With 2026 being an election year in Alabama, state representatives and senators will want to claim additional tax relief as an accomplishment before they hit the campaign trail.

So the President’s success in the Nation’s Capital may lead to more tax relief at the Alabama state capitol as well.

Paul DeMarco is a former member of the Alabama House of Representatives and can be found on X, formerly Twitter, at @Paul_DeMarco

Opinions are the views of the writer alone and do not necessarily reflect the views of the Alabama Gazette staff or publishers.