By Alabama Public Radio
Montgomery, AL – The state is going to shed a dubious distinction Wednesday. Governor Bob Riley is planning to sign an income tax break. It will raise the income tax threshold for a family of four. Right now, Alabama begins taxing income once a family earns four-thousand-600 dollars. That's the lowest tax threshold in the country. There is no other state levying an income tax on families earning less than 10-thousand dollars a year. Alabama's new income tax threshold will be 12-thousand-500 dollars. The tax break will take effect in January.