fiscal cliff Alabama


Financial experts say the fiscal cliff agreement in Washington will cut funding for Alabama's public schools and colleges by at least $70 million annually.

The fiscal cliff settlement affects Alabama differently than most other states. That's because Alabama is one of the few states that provides its citizens with a state income tax deduction for the federal taxes paid. The federal settlement allowed a temporary reduction in payroll taxes for Social Security and Medicare to expire. It also raised the tax rates on the wealthiest 1 percent of Americans.

All six Republicans in Alabama's House delegation voted against legislation to avoid the fiscal cliff, while the state's lone Democrat voted for it.

Republican U.S. Reps. Jo Bonner, Martha Roby, Mike Rogers, Robert Aderholt, Spencer Bachus and Mo Brooks cast no votes, and Democratic Rep. Terri Sewell voted yes on the legislation that passed 257-167 Tuesday.