America's Work Force Union Podcast

Tax cut and child labor legislation begin 2025 for Alabama labor

Written by awfblog | January 8, 2025

Jacob Morrison, President of the North Alabama Area Labor Council and co-host of The Valley Labor Report, joined the America's Workforce Union Podcast to shed light on pressing labor issues facing the state. 

Morrison discussed the recent elimination of the state income tax on overtime wages, a move initially celebrated by many. However, the financial implications have been significant, with estimates suggesting a $240 million cost to the state budget in just nine months. Morrison emphasized the need for a balanced approach, suggesting that while tax cuts benefit workers, the state must find sustainable ways to offset the budget shortfall.

A major focus of Morrison's discussion was the introduction of new legislation aimed at penalizing companies that violate child labor laws. He highlighted a bill proposed by state Sen. Merika Coleman, which seeks to revoke tax incentives from companies exploiting child labor. Morrison expressed optimism about the bill's potential to pass, underscoring the importance of protecting young workers and ensuring ethical labor practices.

Morrison also addressed the challenges faced by unions in Alabama, particularly in light of the Anti-Voluntary Recognition Bill. This legislation penalizes companies that voluntarily recognize unions by revoking their tax incentives. Despite this setback, Morrison remains hopeful, and will continue advocating for policies that tie public funding to pro-worker practices, such as paid parental leave and retirement plans.

Hear more from Morrison about the state of labor in the South by listening to the show above.