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AJC.com > Legislature > Georgia Beat > Archives > 2005 > March > 03 > Entry
Tax rules eased for Georgia companies
The Atlanta Journal-Constitution
Georgia companies will get a $1 billion tax break over the next decade under legislation that won final approval in the Senate this morning and now heads to the governor for his signature.
The Senate voted 43-10 for a bill that radically changes how corporations in Georgia are taxed, moving from a system based on sales, property and payroll to one based only on sales.
It is designed to close tax loopholes and increase the tax burden of out-of-state companies, and would save Georgia firms about $1 billion over 10 years. The measure was supported by Gov. Sonny Perdue’s Department of Revenue.
Backers said it would provide incentives for businesses to invest in Georgia because they wouldn’t have to pay higher taxes for building a plant or adding workers. Lobbyists for Georgia-based Coca-Cola, BellSouth, General Electric and the textile industry pushed the bill, which earlier overwhelmingly passed the House.
“It’s all about jobs,” said Senate Finance Chairman Casey Cagle (R-Gainesville), its leading backer in the Senate.
Critics called it corporate welfare.
“This money is coming from the citizens of this state,” said Sen. Emanuel Jones (D-Ellenwood). “We’re going to reduce taxes on corporate America and we’re going to raise taxes for the citizens of this state.
“We should be man and woman enough to tell the citizens of Georgia that we’re going to raise your taxes.”
Sen. Steve Thompson (D-Powder Springs) criticized Republican leaders for not letting Democrats add an amendment to the bill making the state and companies verify how many jobs — if any — are created because of the corporate tax cut.
Pro-business legislation has zoomed through the General Assembly this session, the first with Republican majorities since Reconstruction. Earlier, lawmakers passed a business-backed measure limiting doctors’ and hospitals’ legal liability, and the Senate approved a sub-minimum wage “training” pay for some workers. The House has approved a bill granting governmental bodies secrecy when trying to attract businesses, and it is about to consider a measure that would allow automobile insurance companies to raise rates without having to first get state approval.
Thompson said he considers himself pro-business, but he added that corporate lobbyists seem to be getting whatever they want from legislators these days. He joked that when he leaves the Capitol, “I check the gold on the dome to make sure it’s still there.”
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