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Thursday, April 10, 2008

Tax Cut Hopes Gone in Georgia

My April 3 SBE Council Cybercolumn was titled “Tax Cuts in Georgia: Excellent Idea!” The piece reported that, while many other states were considering tax increases, the battle in the Georgia state legislature was over what tax cut was the best idea.

The state House had voted to eliminate Georgia’s car tax, with the state Senate passing a 10 percent reduction in the personal income tax. The House came back by doing both tax cuts, but the income tax relief would be delayed for several years.

What happened in the end? Nothing.

State legislators and Lt. Gov. Casey Cagle squabbled, while Governor Sonny Purdue opposed any tax relief.

As an April 9 report by 13WMAZ.com noted: “Republicans who had pledged to wipe out the car tag tax, slash the income tax and cap property tax assessments delivered on none of those promises Friday night as the clock ran out on the legislative session.”

A tremendous opportunity to provide tax relief to individuals and small businesses in Georgia was lost.

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