(Washington, D.C.) – The more than 10,300 members and supporters of Citizens Against Government Waste (CAGW) in Alabama commended the state’s voters for defeating a proposed tax plan totaling $1.2 billion in favor of spending cuts.  The controversial plan, promoted by Governor Bob Riley (R), would have been the largest tax increase in the history of Alabama.

“The defeat of this enormous tax hike sends a loud and clear message that taxpayers are sick and tired of their money being wasted on inefficient government bureaucracies, and duplicative or ineffective programs,” CAGW President Tom Schatz said.  “Elected officials in Montgomery, and other state capitals around the country, need to heed this warning or face the consequences next election cycle.”

The tax hike, which was soundly defeated by a 2-1 margin, would have raised the maximum income tax for a family of four from $4,600, the country’s lowest, to $20,000 after four years.  Gov. Riley proposed the tax increase to help cover the $675 million budget deficit and improve education.  The money would have also been used for college scholarships.

“Across the country, states are facing severe budget crunches as a result of overspending during the economic boom of the last decade.  Now it is time to practice fiscal constraint and find creative ways to reduce wasteful spending,” Schatz continued.  “In an effort to cut spending, South Carolina has established a commission to identify wasteful and duplicative programs in their budget that can be eliminated.  Legislation establishing a similar commission has passed in California.  Alabama needs to follow their example of finding new ways to reduce spending.”

Gov. Riley has claimed that if the tax increase did not pass the state would be forced to release 5,000 inmates, reduce care for the elderly, and cut back on medicine for the mentally ill.  However, there are plenty of questionable past expenditures in the budget that would indicate cuts could be made elsewhere.  These items include: $10 million for a new convention center and hockey arena; $1.5 million for football stadium improvements; $1 million for unused park space; and $71,200 for the Alabama Sports Festival.

“Just like Alabama families, Gov. Riley and the legislature will have to tighten their belts and determine what can be cut when formulating next year’s budget,” Schatz concluded.  “Increasing taxes is an easy way out for politicians to maintain their spending habits.  The voters of Alabama were far too smart to allow this to happen.”

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.