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Changing the Nation, One State at a Time
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Changing the Nation, One State at a Time
Don’t read this unless you are retired or a healthcare or communications provider, you are involved in a non-profit agency, an educational entity, or a business; you itemize deductions or enjoy sales tax holidays; you might buy a used car, boat, or airplane, an insurance policy, cigarettes, a haircut, home repair, anything online, gas, or……groceries. For everybody who doesn’t fit in one of those categories, the recommendations by the Special Council on Tax Reform and Fairness For Georgians will not affect you at all.
On the other hand, nearly everybody I know in Georgia does fit at least one of those categories. So maybe you better take a look at this report. Remember, these are only recommendations – not a proposed bill yet. In the meantime, here are some of the many recommendations in the report.
* Add a 7% excise tax on communications (phones, VOIP, cable), sales tax to internet book and music downloads, and many services from haircuts and Sam’s Club memberships to oil changes and garbage pickup.
* Reduce insurance premium tax and personal income tax rates.
* Get rid of inventory tax, nearly all sales tax exemptions including groceries, sales tax holidays, retirement income exclusion, personal exemptions and all deductions on personal income tax.
Hats off to the great people who selflessly gave of their time to study Georgia’s long and complicated tax code. It was a long overdue project. I think a few of these recommendations have real merit. But overall, if this report is made into a bill substantially “as is,” most Georgians would rightfully oppose it.
Many people favor consumption taxes over income tax. And simplifying the tax code is a welcome idea. But this smells like a big tax increase overall. The charts demonstrating personal income tax savings under the new plan fail to account for Georgians who itemize deductions, or the average metro Atlanta couple whose combined incomes are well over $50,000 per year. The tax on garbage pickups discourages privatization of services. We tried taxing private used car sales once – the state wound up getting sued and sending out rebates. And if anyone thinks retired people, who may have stayed or moved here on the promise of retirement income exclusion, are going to take this laying down – don’t count on it!
The Special Council took on a Herculean task. Now I suggest the GA Legislature take on an even more difficult one – cut, cut, cut spending. The process has started, but don’t quit too soon. Willing patrons can fund the arts, not forced taxpayers. Education and Healthcare cannot be sacred cows – cut. Pass Zero Based Budgeting, Agency Sunset bill, Parental Choice in Education. Fix GDOT and settle the water issue, whatever it takes. Tough times call for tough action. But don’t think Georgians are going to be fooled into paying more taxes.