Tag: Tax Reform

House Ways and Means Tax Reform Subcommittee Wednesday, February 22, 2017 Testimony of Kelly McCutchen, President, Georgia Public Policy Foundation  I would like to focus on four positive aspects of HB 329. Pro-Growth: An almost universally held principle of good tax reform is the goal of broadening the tax base and lowering tax rates. This bill does both. Simplification: This bill simplifies the Georgia Tax Code by collapsing six tax brackets into one flat rate. Economic Competitiveness: Lowering Georgia’s top marginal tax rate to 5.4 percent moves Georgia’s rate below that of seven states, including our neighbor North Carolina, which recently reduced its top tax rate of 7.75 percent to a flat rate of 499 percent.… View Article

AJC Publishes Foundation Op-Ed on 2017-18 Ga. Session

Ahead of the legislative session, The Atlanta Journal-Constitution published an op-ed by Benita Dodd, vice president of the Georgia Public Policy Foundation, in its Sunday edition of January 8, 2017. The op-ed is reprinted in full below; find it online hereLawmakers should focus on gov’t. reforms that boost state’s well-being OPINION By Benita M. Dodd Opportunity is knocking as the door opens on Georgia’s 2017-18 legislative session. In a state with a Republican governor since 2002 and GOP majorities in both chambers since 2004, it’s time for legislators to welcome policy reforms that can improve income, opportunity and well-being. In 2014, the Legislature capped the personal income tax rate at 6 percent. That’s a start. But legislators ignored… View Article

Guide to the Issues: Tax Reform

Principles: Minimize the impact of taxes on economic growth. Taxes are necessary to fund core government services, but every additional dollar of taxes is a discretionary dollar taken away from a family. A decision to raise taxes is an explicit decision that a government program has a higher priority and importance than individual decisions. The private sector is the source of all wealth, and is what drives improvements in the standard of living in a market-based economy. Taxes should consume as small a portion of income as possible, should not interfere with economic growth and investment and should not place the state at a competitive disadvantage. Limit exemptions to encourage a broad tax base and low rates. Exemptions shift the… View Article

Friday Facts: August 5, 2016

  It’s Friday!  Then and Now: In 1991, when the Georgia Public Policy Foundation was established, Georgia poultry plants were in their ninth consecutive year of record-setting production: 867.3 million broilers. The state continues to be a record-holder. Last year, it was 1,339,600,000 broilers with a production value of more than $4.25 billion! Events August 22:  Register now for “Across the Pond: A Policy Update,” the Foundation’s noon Policy Briefing Luncheon at Cobb County’s Georgian Club on Monday, August 22. The keynote speaker is British Consul General Jeremy Pilmore-Bedford.  $35. Information here; register online here. Guide to the Issues 2016: What policies should Georgia adopt on education? Find out the Foundation’s proposals… View Article

Friday Facts: July 1, 2016

July 1, 2016 It’s Friday!  Then and Now: In 1991, when the Georgia Public Policy Foundation was established, U.S. Rep. Newt Gingrich (R-Ga.), the only Republican among Georgia’s 10 Congressmen and two senators, was the Minority Whip of the House. Both chambers were majority Democrat. Today, both chambers are majority Republican; the former Georgia Congressman and U.S. House Speaker is being mentioned as a running mate for presumptive GOP nominee Donald Trump; both Georgia senators and 10 of the 14 Congressmen are Republican. U.S. Rep. John Lewis is the only current Georgia member from the 102nd Congress. Guide to the Issues 2016: Find out what the Foundation proposes on issues such as transportation, health care, education, taxes… View Article

CPA, Readers Hail Georgia Tax Reform Plan

The Senate voted along party lines March 16 on tax reform for Georgia. The Foundation has received numerous compliments after Kelly McCutchen’s March 18 commentary about the state tax reform legislation that passed the Senate March 16. One comment came from CPA Jeff Kellar: With Florida and Tennessee not having an individual income tax, and Alabama’s rate of 5 percent, Georgia should continue to move in a more competitive direction.  One additional measure the state could employ to assist and encourage small business, would be to eliminate the Net Worth Tax on small business corporations. (Tennessee imposes a “Hall” tax on certain interest and dividend income). Georgia’s legislation, HB 238, would in fact eliminate the Net Worth Tax.   Kellar,  … View Article

Tax Reform A Needed Boost for Georgia’s Economy

The Senate voted along party lines March 16 on tax reform for Georgia. By Kelly McCutchen The Georgia Senate deserves a hearty congratulations for approving a pro-growth tax reform Wednesday (March 16) that would reduce Georgia’s marginal personal income tax rate for the first time since it was implemented in 1937. To be the best place to do business in the nation, Georgia needs a more competitive tax code. In the Southeast, only South Carolina’s top income tax rate of 7 percent is higher; nationally, 28 states have lower marginal rates. The proposed income tax changes can be explained in less than a minute. Georgia’s six tax brackets would be collapsed into one tax bracket of 5.4 percent (a reduction… View Article
The Georgia Senate voted Wednesday to approve a pro-growth tax reform that would reduce Georgia’s marginal personal income tax rate, the first change since the rate was implemented in 1937. Final passage depends on the House agreeing to the Senate’s changes to the bill and the Governor’s signature. The arguments from opponents of a tax cut range from weak to unfounded; the Georgia Public Policy Foundation rebuts them below. Claim: Tax Reform Needs More Comprehensive Study Tax reform has been studied comprehensively and debated extensively for at least six years. Large corporations have benefited from some reforms but families and small businesses have seen little change.  Just in the past 24 months, the legislature has held at least six hearings… View Article
As Georgia legislators consider tax reform legislation, consider what happened in Kansas.  Writing in Investor’s Business Daily on February 1, 2016, Arthur Laffer and Stephen Moore note, in particular, “sales tax revenues appear to be the prime culprit of revenue shortfall—hardly something caused by an income tax cut.” The article is printed below; access it online here (subscription required): http://www.investors.com/politics/brain-trust/laffer-and-moore-sweet-supply-side-revenge-for-tax-cutters-in-kansas/. By Arthur B. Laffer and Stephen Moore Few states have swirled in more controversy over its tax and budget policies of late as much as Kansas. Liberals have denounced the state’s tax cutting and free market reforms as a debacle that all states should avoid repeating. But we’ve been involved with the Kansas fiscal reforms from the start and… View Article
Foundation president Kelly McCutchen was quoted in an article in the March 4-10, 2016 edition of the Atlanta Business Chronicle by Dave Williams, “Income tax cut moving through General Assembly.”  The article is reprinted below and can be accessed online at http://www.bizjournals.com/atlanta/print-edition/2016/03/04/income-tax-cut-moving-through-general-assembly.html. (Subscription required.) Income tax cut moving through General Assembly By Dave Williams Georgians may get a chance to vote this fall to reduce state income taxes for the first time since the 1930s. The Georgia Senate passed a constitutional amendment Feb. 29 that would roll back the state income tax subject to certain budgetary triggers. If it gets through the state House of Representatives, voters would decide the measure on the November statewide ballot. A separate bill… View Article

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