STATE HEADLINES:

TAX STRUCTURE: One state lawmaker is introducing a Bill to re-configure Alabama`s personal income tax structure. Alabama House General Fund Committee Chairman John Knight wrote the Bill. It reportedly would eliminate the federal income tax deduction on state returns. The Bill would also increase the minimum income tax level from roughly 45-hundred dollars to 15-thousand dollars a year. The tax rate for those making at least 65-thousand dollars a year would increase by about one percent. The Bill is similar in concept to a tax proposal offered by Governor Bob Riley in 2002. As you may recall, that plan was shot down by voters. HEALTHSOUTH TRIAL: Week four into the accounting fraud trial of Healthsouth founder Richard Scrushy put former Chief Financial Officer Bill Owens back on the stand. Owens detailed yesterday, how medicare billing practices played a role into the nearly $2.7 billion fraud that took place under Scrushy`s leadership. "The Birmingham News" reports that Healthsouth got well-known entertainers to perform at company events, then billed medicare for additional funds to offset the costs. Scrushy denies all charges against him as his attorneys acknowledge that a scam took place. However, they say their client had no knowledge of what his employees were doing.