Understanding the Alabama Economic Freedom Act

The Alabama Economic Freedom Act, aka Alabama FairTax, is a new way to collect revenue for the state. It is a one-time consumption tax on all NEW goods and services; an inclusive tax that replaces ALL current state income and sales taxes, including individual, corporate, inheritance, gift, business-to-business taxes, and local sales taxes. Once an item is taxed, it is never taxed again. Used goods were already taxed when new and are never taxed again. An individual Alabama resident has no need to accumulate receipts for tax purposes and no need to fear audits from an Alabama income tax system. Finally, the AEFA is defined to be revenue neutral when enacted.

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Understanding the Alabama Economic Freedom Act - 2023_013123