Home > Jay Bookman > Archives > 2008 > June > 09 > Entry
DEL.ICIO.USUh oh, bad news from the guv’s office
The Atlanta Journal-Constitution
From Gov. Perdue’s press office…
ATLANTA - Governor Sonny Perdue announced today that net revenue collections for the month of May 2008 (FY08) totaled $1,473,892,000 compared to $2,140,232,000 for May 2007 (FY07), a decrease of $666,340,000 or 31.1 percent.
The percentage decrease year-to-date for FY08 compared to FY07 is 0.1 percent.
“These figures are not surprising given April’s sharp rise in collections due to processing improvements made by the Department of Revenue,” said Governor Perdue. “We will continue to monitor revenue collections and responsibly manage the state’s fiscal affairs.”
This is bad news, folks. The governor is correct that the stark decline in income tax collections over May 2007 — 41.8 percent for individuals, 32.8 percent for corporations — is largely a consequence of more of that money being collected and tallied in the April tax season.
However, the 8.3 percent decline in sales and use tax revenues compared to May ‘07 cannot be explained that way and might endanger the state budget.
More importantly, it tells us that the state economy is hurting worse than most of us thought.
Comments
By Walter Earl
June 9, 2008 9:44 PM | Link to this
Well I guest now the Gov.Off. can see now the economy is not slow its down… The lose;s come from people losing their jobs, homes, everything is going up. Bellsouth,Comcast,the gsa pumps, food, less not medicine for our seniors. most of the city of atlanta pools are close our teens can’t find summer jobs beause their parents have them and the Gov. is worrying about taxe’s and I’m worried about getting robbed. If the Gov. party hadn’t sent alour jobs overseas Ga.’s would have funds to pay their taxe’s and most of us wouldn’t mind aslong as we had a place to work and pay them… Give us a brake and create more jobs.
By Ed
June 10, 2008 7:50 AM | Link to this
What’s amazing is how much the President is getting blamed for high oil prices. The prices were half of what they are now when the Democrats took over Congress and Nancy and Harry promised a plan to lower the prices. Well, whatever the plan was, it didn’t work. If blame is going to be cast, the the Congress deserves their fair share, and I say “Congress”, not Democrats or Republicans.
By Road Scholar
June 10, 2008 8:31 AM | Link to this
Ed, if you had paid attention, Bush has vetoed most Democratic sponsored legislation. The energy bill was a Republican bill. Oh, and who invaded Iraq?
By gttim
June 10, 2008 8:57 AM | Link to this
Not only has Bush vetoed most of the legislation passed, the GOP won’t even let the majority of bills presented get voted on. They run a filibuster on everything. Yes, the whiny, crybaby Republicans who constantly complained about the Democratic Party filibustering bad legislation suddenly think it is OK when they do it. Not only do Republicans destroy economies, but they are hypocrites to boot.
By Ed
June 10, 2008 9:15 AM | Link to this
Seems like four years ago Republicans were saying the same thing about Democrats whining and blocking legislation. What I am saying is that everyone needs to wake up and realize that no one person or party is to blame. Republicans are just as guilty, but no more than anyone else.
By hillbilly ragger
June 10, 2008 10:18 AM | Link to this
Well, shoot, all you gotta do is cut taxes!
The Tax Cut Fairy will sprinkle fairy dust, revenues will increase like magic, and all will be well!
By CJ
June 10, 2008 4:41 PM | Link to this
As I recall, Georgia House Speaker Glenn Richardson’s “GREAT” tax plan involved replacing some portion of state income taxes (among other taxes) with a state sales tax.
I’d be curious to know if Jay, or anybody else, has an idea of which form of taxation is more stable…sales or income?
I’m not a fan of regressive taxes, and therefore, I’m not a fan of sales taxes. However, I don’t know how they compare on the volatility issue to state income taxes (I do know that property taxes are more stable than sales taxes as a source of income at the local level).
By Robt
June 11, 2008 3:38 PM | Link to this
Huh !!!! “hurting us worse than we thought’? The only answer to that is you must not be thinking AT ALL. Industry is leaving Georgia (Atlanta particularly) in droves because it can longer find highly skilled people from elsewhere who wish to live there due to crime and rapidly increasing taxes. The state now finds itself in a rapid downward spiral. Increased taxes began with all the BS social programs that were needed to support and entitlement minded population (frankly the crime was the result of the same mindset). The reduced business and individual tax revenues has increased taxes on those left behind so the exodous is sure to continue.