Tag: FairTax

Tough Choices on Tax Reform for Georgia

By Kelly McCutchen Tennessee just became the second state in U.S. history to eliminate its personal income tax. Florida and Texas do not have a personal income tax. With Georgia’s unsuccessful attempts over the last decade to shift to a more pro-growth tax structure by lowering its personal income tax, it’s worth asking the question: How do these states manage it? Do they spend less? Do other sources of revenue make up for lower income taxes? Or is it something unique that Georgia can’t duplicate? Georgia’s personal income tax brings in more than $8 billion a year, or $878 per capita. The challenge is to identify $878 per capita of spending cuts or other revenues to make up the difference.… View Article
SENATE FINANCE SUB-COMMITTEE ON TAX REFORM MONDAY, NOVEMBER 9, 2015 Testimony of Kelly McCutchen, President of the Georgia Public Policy Foundation My remarks will focus on tax policy principles, analysis of two recent state tax reforms, myths associated with tax reform and suggestions for a way forward for Georgia. Tax revenue is necessary to fund core government functions. The goal of tax policy is to raise those necessary funds while minimizing the impact on economic decision making. Surprisingly, there is broad agreement from economists across the political spectrum on what constitutes good tax policy. This can be very simply stated as: 1) broadening the tax base and lowering rates, 2) not applying the sales tax to business inputs and 3)… View Article

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