Category: Taxes

The Tide is Turning

Kelly McCutchen “I think it’s so irritating that once I die, 55 percent of my money goes to the United States government. You know why that’s so irritating? Because you have already paid nearly 50 percent on that money.”  — Oprah Winfrey “…for too long the [British] tax system has undervalued entrepreneurship and investment.” — Gordon Brown, Chancellor of the Exchequer (United Kingdom) When a pop icon like Oprah Winfrey and Britain’s Labor government both call for tax cuts, it is safe to say that the idea has become mainstream. Ms. Winfrey’s comment came during the taping of her television show. The shocker from Great Britain came from a March budget address by Chancellor of the Exchequer Gordon Brown, in… View Article

The Tide is Turning

By Kelly McCutchen “I think it’s so irritating that once I die, 55 percent of my money goes to the United States government. You know why that’s so irritating? Because you have already paid nearly 50 percent on that money.”  — Oprah Winfrey “…for too long the [British] tax system has undervalued entrepreneurship and investment.” — Gordon Brown, Chancellor of the Exchequer (United Kingdom) When a pop icon like Oprah Winfrey and Britain’s Labor government both call for tax cuts, it is safe to say that the idea has become mainstream. Ms. Winfrey’s comment came during the taping of her television show. The shocker from Great Britain came from a March budget address by Chancellor of the Exchequer Gordon Brown,… View Article
The following article is reprinted with permission from the March 1999 edition of Georgia County Government Magazine, published by the Association County Commissioners of Georgia, the 85-year-old education, training and legislative advocacy organization of all 159 Georgia county governments. ACCG may be reached on the Web or by writing 50 Hurt Plaza, Suite 1000, Atlanta, Georgia 30303. In his first budget message over eight years ago, Governor Miller quoted from the old country song, warning us that we could not continue “drinking that new bubble up and eating that rainbow stew.” From that admonition, he carried forward on his plan to reduce state agency spending and therefore the size of state government. Even with his 5% annual redirections and the… View Article

It’s Time to Clean Up the Property Tax Mess

By Jerry R. Griffin, Executive Director Association County Commissioners Of Georgia The following article is reprinted with permission from the March 1999 edition of Georgia County Government Magazine, published by the Association County Commissioners of Georgia, the 85-year-old education, training and legislative advocacy organization of all 159 Georgia county governments. ACCG may be reached on the Web or by writing 50 Hurt Plaza, Suite 1000, Atlanta, Georgia 30303. Every year hundreds of bills and resolutions are introduced to fix the property tax. So often a bill will focus on a very small section of the law and when examined carefully it is discovered that, rather than fixing a problem, it creates new problems. Part of the problem results from legislators… View Article
Roy Barnes and Guy Millner have each proposed using state funds to reduce property taxes on homeowners. Both proposals are relatively straight forward. Barnes proposes adding a new homestead exemption of $20,000, which would be in addition to the existing homestead exemptions, and would be phased in over time. The state would reimburse local gov- ernments for the loss in property tax revenue. Millner proposes an income tax credit equal to 20 percent of a homeowner’s property taxes, up to a maximum credit of $500. The cost of these two proposals differ. We estimate that the Barnes proposal, when fully phased in, will cost the state government between $610 and $630 million per year, while the Millner proposal will cost… View Article

A Georgia Sales Tax For the 21st Century

Roy Bahl & Richard Hawkins Fiscal Research Program School of Policy Studies, Georgia State University Executive Summary The sales tax has some significant advantages for Georgians, and voters seem to prefer new sales taxes to increases in income or property taxes. One advantage is the relatively small liability per transaction. Many Georgians have no idea how much sales tax they pay over the course of a year. Additional advantages include the fact that taxpayers understand the structure of the sales tax, the sales tax reaches virtually everyone and the state collects tax revenue from consumers who live in other states (e.g., tourists). With respect to its disadvantages, tax payments are not deductible from the federal income tax (while income and… View Article
Dr. Laura A. Wheeler Fiscal Research Program School of Policy Studies, Georgia State University Executive Summary The state of Virginia’s recent action to reduce the property tax on motor vehicles has generated interest in several states, including Georgia. Currently, 28 states tax motor vehicles; in 12 states the tax is imposed by local governments, while in 16 the state imposes a uniform tax. http://www.gppf.org/pub/Taxes/car_tax.pdf… View Article
Barbara M. Edwards Fiscal Research Program School of Policy Studies, Georgia State University Executive Summary The individual income tax generated over 45 percent of Georgia’s 1997 tax revenue, making it the largest single source of revenue for the state. While there are differences across states in the structure of income taxes, Georgia’s income tax is typical of the 41 states that levy an income tax on a broad definition of income. Georgia bases its tax on the federal adjusted gross income, as do most other states, and has deductions, exemptions and a rate structure that are consistent with other states. There have been various calls for changes in the state income tax, largely driven by a desire to reduce taxes.… View Article

Should the Corporate Income Tax be Repealed?

By Martin F. Grace Georgia, like most of her sister states, has a corporate income tax. The corporate income tax was first introduced in Georgia in 1929. The rate has always been a flat proportional rate, fluctuating up and down during the years within the range of 4 percent and 7.5 percent. The present rate of 6 percent has not changed since 1969. The corporate franchise tax, levied on net worth, is administered in conjunction with the corporate income tax. In 1997, these two taxes constituted approximately 6.91 percent of the state’s tax revenues. However, this percentage fluctuates from year to year and has decreased over the past number of years. In 1997, corporations paid $729.5 million in these two… View Article
By Dr. Steve Morse Executive Summary In 1994, the Governor’s Development Council created Georgia’s Business Expansion Support Team (B.E.S.T.) for the purpose of attracting new companies to Georgia and helping existing Georgia businesses expand. To support the Georgia B.E.S.T. program, the 1994 Georgia General Assembly passed the Georgia Business Expansion and Support Act, authorizing tax incentives to attract businesses to Georgia and allow the state to more effectively compete in the multi-state bidding wars with neighboring states Alabama and South Carolina. Supporters of tax incentives argue that Georgia must offer concessions at least equal to neighboring states or risk losing new business and job creation opportunities. http://www.georgiapolicy.org/ftp_files/taxcred.pdf View Article

The Foundation always tells the truth.

Governor Roy Barnes more quotes