The Republican nominee for Lieutenant Governor, John Wahl, said recently that Alabama will eventually have to phase out its state income tax to remain economically competitive with other GOP states in the region.

“Mark my words, the state of Alabama will phase out its state income tax at some point,” Wahl said.

“It’s a growing movement nationally. Other states are moving towards it. Florida does not have a state income tax. Tennessee does not have a state income tax. Texas does not. Mississippi is working to phase theirs out. Georgia has cut theirs. North Carolina has cut their income tax. If we don’t start phasing ours out, we’re going to be left behind the curve, and I am tired of watching Alabama follow other states.”

Every time this issue is brought up, though, there’s always one question: How will the state make up the lost revenue?

Many Alabamians are wary of cutting the income tax because they really like low property taxes, or lower taxes in other areas of the economy. And while there will be some that say the shortfall can be made up through government spending cuts, most aren’t holding their breath on that possibility.

So if Wahl is correct and phasing out the state income tax is inevitable, how can it be accomplished?

The answer is simple: new data centers.

West Virginia is already becoming the model for using data centers to eventually eliminate its state income tax.

Under the state’s plan, 50% of the revenue from approved hyperscale data center projects is dedicated to cutting and ultimately ending the state personal income tax, with a share of the rest going to counties and infrastructure.

“This shared framework gives us the exact blueprint we need to attract billions in private investment, create thousands of high-paying construction and technology jobs, lower taxes for our citizens, and revitalize economically distressed regions, all while preserving the wild and wonderful state we call home,” Governor Patrick Morrisey said about the plan.

If West Virginia can get this done, I see no reason why Alabama can’t follow their lead.

The good news is U.S. Senator Tommy Tuberville (R-Auburn) is most likely going to become Alabama’s next Governor, and he’s very bullish on building new data centers.

“Data centers are the future,” Tuberville said. “Everybody right now is looking. Hey, we don’t know whether we want data centers. Well, if you don’t have the power right now, and if you don’t have the ability to have a contract for the power, you’re not gonna get one anyway.”

Tuberville also talked about what that could mean for future tax revenues.

“We have 20 as we speak. We’ll probably have 10 more in the next seven to eight years,” Tuberville continued. “It’s not fast tracking, and so we need to be able to store information. That’s important. It’s something too that will help communities that don’t have a huge revenue component to bring in tax money. These things bring in tons of tax money. There’s a data center going in as we speak in Alabama that’s $78 billion, and it will bring $1 billion worth of tax money per year to that city, $1 billion, not million.”

If he wants to sell the idea to people in the state, he needs to tie the issue to phasing out the state income tax.

I know that many Alabamians on both sides of the aisle have concerns about the data center buildout. They are worried about increasing energy costs, environmental issues, an increase in noise in the areas where they are built, and how it can affect the local water supply. But while those are legitimate concerns, leaders can address them without banning data centers outright.

In fact, Tuberville’s plan makes sure the buildout is done the right way, a plan that puts Alabamians first.

Communities will decide where and when data centers get built.

It’s time Big Tech pays, and it’s time to put the people of Alabama first. pic.twitter.com/495m8rbxCd

— Tommy Tuberville (@CoachForGov) October 6, 2026

This is why former U.S. Senator Doug Jones’ (D-Mountain Brook) plan to put a moratorium on data center construction is so foolish. Jones (D-Mountain Brook), the Democrat nominee for Alabama Governor, said he wants to ban them for one year. That would be a huge wasted opportunity.

We all remember when Democrats wanted to ban fracking for natural gas. Luckily that never happened. There’s a reason why America is a net exporter of energy. Now Democrats want to ban new data centers.

I believe Wahl is right. It’s time to start phasing out the state income tax and join other Republican states like Tennessee. I also think the time to start this is now because of the massive data center expansion. Let’s not miss this opportunity.

Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” weekdays 9-11 a.m. on WVNN. You can follow him on X @Yaffee.