Analysis: Mid-range earners in Alabama rank 36th highest on federal tax cut benefits


Middle-range income earners in Alabama ranked 36th in the nation in terms of how they benefited from the federal Tax Cuts and Jobs Act, according to a new Tax Foundation analysis.

An interactive tool on the foundation’s website shows the average size of the 2018 tax cuts among specified income levels in each state’s congressional district. The 2017 federal tax reforms cut tax burdens for most Americans and may help to raise wages by improving the business climate nationwide, the foundation said.

The number of jobs added last year in Alabama as a result of the income tax cuts was estimated to be 2,941. The average income tax cut for those in the state who earned between $50,000 and $75,000 annually was $1,352.11, according to the analysis.

The size of individuals’ tax cuts varies greatly depending on annual income levels. The online tool allows readers to track seven levels of average adjusted gross incomes, from $10,000 and under to $200,000 and up.

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Impact of Tax Cuts and Jobs Act by State

StateEstimated Jobs Added in 2018Average Tax Cut (for Incomes of $50,000-$75,000)Tax Cut Rank
Alaska476$1,516.261
North Dakota622$1,488.952
Utah2,187$1,478.973
Ohio8,092$1,476.264
Vermont455$1,472.485
South Dakota637$1,455.696
Wyoming413$1,439.447
Indiana4,529$1,438.518
Michigan6,396$1,437.199
New Hampshire991$1,435.6810
Minnesota4,271$1,429.1811
West Virginia1,099$1,428.2612
Pennsylvania8,693$1,426.8913
Colorado3,936$1,425.5214
Iowa2,293$1,423.9915
Maine911$1,423.2716
Delaware666$1,422.8917
Wisconsin4,284$1,411.8818
Montana687$1,410.9319
Kansas2,052$1,410.7120
Missouri4,184$1,406.0821
Nebraska1,489$1,405.2122
Rhode Island723$1,402.1823
Kentucky2,793$1,401.1124
Tennessee4,419$1,392.0525
New Mexico1,217$1,391.1826
Washington4,931$1,386.8827
Illinois8,830$1,385.9828
New York13,897$1,385.1429
Arkansas1,800$1,368.5930
Connecticut2,444$1,367.8531
Massachusetts2,444$1,367.8532
Oklahoma2,433$1,356.0333
Florida12,642$1,354.5734
Arizona4,098$1,354.2935
Alabama2,941$1,352.1136
Hawaii959$1,345.2937
Nevada1,986$1,341.3538
South Carolina3,068$1,341.0339
Louisiana2,879$1,335.7640
North Carolina6,507$1,328.0241
Texas18,128$1,324.5642
Idaho1,063$1,318.9343
Oregon2,763$1,308.5044
New Jersey6,041$1,304.9745
Virginia5,782$1,291.8046
Mississippi1,683$1,279.0147
California24,701$1,265.7148
Georgia6,526$1,262.1749
Maryland3,952$1,194.9850
Source: Tax Foundation

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