There seem to be a lot of state elected officials around – from California to New York – who remain oblivious to the economic effects of policymaking. As a result, we’ve seen a wide array of tax increases in various states during this recession.
These lawmakers are intent on taking a very bad economic situation and making it worse.
But state legislators in Georgia actually did the right thing. They passed a measure featuring a 50 percent cut in the state’s individual and corporate capital gains tax rates.
This is exactly the kind of legislation the economy needs right now. Reduce the costs of and boost the incentives for investment and entrepreneurship in order to enhance innovation, economic growth and job creation.
Unfortunately, according to a May 11 report by the Atlanta Journal-Constitution, Georgia Governor Sonny Perdue, a Republican, has promised to veto the measure, citing budget deficit concerns. Of course, if deficit concerns are legitimate, then they should be dealt with on the spending side of the state budget equation.
Governor Perdue had the chance to be a leader on the national stage in terms of taking a bad economic situation and working to make it better, and he simply blew it.
Let’s hope that state legislators move to override this misguided veto.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
1 comment:
Yes, your governor blew it. We were considering moving to Georgia, but with that capital gains tax, we will stay in Florida. You have now lost the opportunity to attract thousands of retirees and investors to Georgia to buy up all of those houses that you can't sell.
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