Study finds working poor hardest hit by income tax, By Phillip Rawls (AP), November 5, 2009, Montgomery Advertiser: “A national study released Wednesday showed Alaba­ma makes families living in poverty pay higher income taxes than any other state. The study by the Center on Budget and Policy Priori­ties comes a few days after a U.S. Census report showed Alabama residents and busi­nesses overall pay less in state and local taxes than their counterparts in any other state. In the 2007 fiscal year, the average of state and local taxes collected per person in Alabama was $2,909. Missis­sippi finished 49th at $2,989. The national median was $4,011. That doesn’t mean every­one in Alabama is enjoying low taxes…”

Tax refund loans cost Arkansans millions, By John Lyon, November 3, 2009, Fort Smith Times Record: “Arkansans spend about $100 million a year obtaining loans against anticipated tax refunds, according to a report released Monday by Arkansas Advocates for Children and Families. The report also estimated that Arkansans miss out on as much as $110 million a year by failing to claim the federal earned income tax credit. ‘Low-income tax filers are paying tax preparation fees, in many cases exorbitant tax preparation fees to have their taxes done, when in fact most low-income families could receive free tax assistance through an existing VITA (Volunteer Income Tax Assistance) site,’ Rich Huddleston, executive director of Arkansas Advocates, said at a news conference to announce the report…”

Food sales tax could be completely reinstated, By Arthur Raymond, October 9, 2009, Deseret News: “It may be coming back. A state sales tax on food that’s been incrementally decreased for the past two years - and widely viewed as one that unfairly targets low-income families - could be under consideration for a complete reinstatement in the face of ongoing, large-scale revenue losses. Members of the Utah Tax Review Commission heard testimony Thursday from advocates of the disadvantaged, grocery industry representatives, tax watchdogs and a state legislator who sponsored a failed attempt at increasing the food tax last session. This time, however, the idea may find some traction under the cloud of an upcoming state budget shortfall currently being estimated at $700 million…”

Obama would keep $85 billion in tax breaks for working poor, By Lori Montgomery, September 3, 2009, Washington Post: “President Obama is proposing to add more than $85 billion to the nation’s budget deficits over the next decade to extend two tax breaks for the working poor, a move critics on Wednesday blasted as a violation of Obama’s pledge to pay for new policies. The tax breaks were included in the economic stimulus package Obama signed soon after taking office in January, and are scheduled to expire in 2011. But last week, in its midyear update of the federal budget, the White House said it plans to extend the tax cuts through 2019 without covering the cost by cutting spending or raising taxes elsewhere. The reason? Technically, the stimulus amended a series of sweeping tax cuts enacted in 2001 during the Bush administration. Obama has repeatedly said he does not expect Congress to cover the enormous cost of maintaining the Bush tax cuts past their 2010 expiration date. And because the stimulus provisions are now part of the Bush tax cuts, Congress shouldn’t have to pay for them, either, White House budget documents say…”