With only 33 of 105 state representatives among its ranks, the voice of the Alabama House Democratic Caucus can easily be drowned out by the Republican supermajority.
But that won't prevent House Democrats from presenting to Alabama voters a legislative agenda that “puts working families first and focuses on voluntary revenue-raising measures and closing corporate tax loopholes,” according to Lance Latham with the House Democratic Caucus.
When Gov. Robert Bentley campaigned for reelection last fall, he set forth an agenda based on a pledge of no new taxes. Bentley's billboards across Alabama promised “More jobs. Less government. No new taxes.” That was in 2014.
Welcome to 2015, where the governor proposed a $541 million (down from its original $700 million amount) tax increase that, if not passed, would result in dramatic cuts in essential services for Alabamians. Bentley outlined it during his annual State of the State address in March.
“The budget I will send you will contain eight separate tax increase proposals–which are fair and necessary–for a total of $541 million in estimated increased revenue,” Bentley said.
And Democrats are leaping on the opportunity to remind voters about Bentley's taxation about-face.
“The only conversation I had with the governor, I sat in his office and heard him say, as a candidate, we'd have no new taxes,” Rep. Johnny Mack Morrow (D-Red Bay) said. “He had to know what he was going to do, because as soon as the election was over he said we need $700 million more."
Morrow's Democratic colleagues trumpeted their agenda through a press release last week. Key revenue-generating measures would mainly be voluntary, through legislation that would create a state lottery and a separate bill that would require Bentley to negotiate an agreement with the Poarch Creek Indians to allow table gaming in their casinos in return for a portion of the revenue.
Additionally, Rep. Patricia Todd (D-Birmingham) will introduce a tobacco tax increase of $0.32.5 per pack. If approved, this legislation would generate $20 million annually for the state. Rep. John Knight (D-Birmingham) has proposed a bill to eliminate state sales tax on all grocery items. Knight proposes to offset the lost revenue by eliminating certain income tax deductions.
Another Democratic legislative priority focuses on closing the many corporate tax loopholes enjoyed by out-of-state corporations doing business in Alabama.
Most of these bills have little chance of becoming law, Morrow explained, due to expected mass opposition from Republicans.
“I don't think they have any chance of passing," Morrow said. "[Republicans] have their minds made up on what taxes they want and, as usual, they're going after regressive taxes, increasing taxes on those who can least afford it. Bill Canary and his pro-business votes for the Business Council of Alabama have come up with their list of taxes to raise. If we need new revenue, there's $400 million the governor's friends in the Business Council could generate by closing corporate tax loopholes.
“But they don't tax them. They go after the little guys and middle-income group. The big guys have the lobbyists and the power to keep it from happening."
Should his tax increase not pass, Bentley has painted a dire picture for Alabamians that involves the closing of state parks, the closing of 30 to 40 rural hospitals and a dearth of state troopers on Alabama highways. Morrow believes other funding measures, outside of tax increases, should be considered to make up the shortfall.
“After midnight each night, we have six troopers on duty in Alabama,” Morrow said. “And we're just one federal court order away from the federal courts taking over the [Alabama] Department of Corrections. We passed these tough laws that place more people in jail, but we haven't built new prisons, and it doesn't work like that."
The legislature passed a prison reform bill last month, but even its most optimistic five-year plan still calls for 130-percent capacity in the state's prison system.
Alabama tax loopholes allow foreign corporations to prevent tax obligations in Alabama by shifting income earned in this state to other states. A majority of states with state taxes have combined reporting laws, which would eliminate this loophole.
Another loophole allows taxation of gas wells at a lower rate if initiated after a certain date and at a certain depth. Originally an economic development incentive to encourage production, many Democrats believe the rules have been in place long enough to have little utility as an economic development measure.
Seemingly, Bentley's recent comments would support such corporate tax law reform.
“Taxes should be fair among all people," the governor said. "It is unfair for certain groups to be taxed for goods and services while others are not taxed for those same goods and services. If Alabama families have to pay their fair share of taxes, so should large national and international corporations. Almost two-thirds of the corporations operating in Alabama paid zero income tax."
Frustrated with what he believes is inconsistent policy by Republicans, Morrow says that with the power of numbers in Alabama's legislature comes the responsibility of leadership.
“The bottom line is the Republicans have proven they can run over Democrats any time they want to," Morrow said. "I say to our elected Republicans, show us some leadership now. Quit making excuses, stop whining and just lead.
“It's easy to be the critic. It's more difficult to come up with some innovative solutions. That's tough to do. Otherwise, what do we tell a young person looking at a career in Alabama politics? If you want to do well in politics, learn to lie with a straight face?"
