Gold Dome Live is moving!
Our new spot will allow us to get the news to you even faster and make commenting easier. Please bookmark the new site and sign up for our rss feed:
http://blogs.ajc.com/gold-dome-live/
AJC.com > Legislature > Blog > Archives > 2007 > March > 26 > Entry
DEL.ICIO.USHouse will put off action on tax proposals
The Atlanta Journal-Constitution
Georgia’s House Republican leaders announced today they are putting off decisions on several major tax cut proposals until next year, including Gov. Sonny Perdue’s campaign promise to cut taxes on retirement income for the elderly.
They say they want to study those proposals — along with proposals to increase taxes for transportation projects and one to eliminate the car tag tax — over the summer and fall and then consider “major tax reform” legislation during their next 40-day session starting in January.
“The House has invested a tremendous amount of energy and time behind the scenes to come up with comprehensive tax reform,” House Majority Leader Jerry Keen (R-St. Simons Island) told reporters this afternoon. “Before we move with any major new tax proposals or credits — anything that is major — we feel like the prudent thing to do is wait.”
“When we come back in January,” Keen added, “you are going to see for consideration a major tax reform proposition out of the House that will really give you something to talk about.”
House Speaker Glenn Richardson (R-Hiram) recently started working with a pair of consultants on overhauling Georgia’s tax system: Arthur B. Laffer, an economist and former adviser to President Reagan, and Donna Arduin, a former fiscal advisor to Gov. Arnold Schwarzenegger.
Among the ideas they have discussed is a proposal to wipe out property taxes across the state in favor of a 5.75 percent flat income tax and a 5.75 percent sales tax. Right now, Georgians essentially pay a 6 percent income tax and 4 percent sales tax, along with local property taxes.
“We will probably be introducing a bill — which clearly will be designed to be used next year and to be talked about this summer as the mechanism to do this — probably right toward the end of the session,” Richardson told reporters this month. “I never planned to vote on it this year. I want to put the bill out there. I’m going to study it, have hearings on it, have input.”
Richardson also said he doesn’t anticipate the Legislature dealing with several proposals to increase taxes for transportation projects this year.
“I’m not going to muddy the waters right now on the tax discussion transportation,” Richardson said. “We may muddy it altogether but not separately.”
During his reelection campaign last year, Perdue promised to eliminate the state income tax on retirement income for upper-income Georgians older than 65. Seniors who work past 65 would continue to pay state income taxes on the wages they earn. However, any income from investments and 401(k)s would not be taxed under Perdue’s plan.
“There is still plenty of time left and the governor believes this is more than a campaign promise to be kept: it is the right thing for the people of Georgia and we’re going to keep working for it,” Perdue spokesman Dan McLagan said.
House Speaker Pro Tem Mark Burkhalter (R-Alpharetta), meanwhile, is proposing to eliminate the car tag tax, a measure that could save taxpayers $600 million annually when fully phased in. His proposal will also wait until next year, Keen said.
“It is a top priority of mine,” said Burkhalter, who joined Keen at the news conference. “And I will do everything I can to make it a priority of the House as we study the [tax] system.”
Permalink | Comments (10) | Categories: politics
Comments
Commenting is now closed for this entry.
By Overtaxed
March 26, 2007 4:25 PM | Link to this
Hey Georgia House!!! Read my lips!!!! “SCREW YOU!!!!” Waiting to see if you can cut taxes? Hey, cut the crap pork spending, cut the things that have no business being funded by the government, and cut entitlements! You do not need time to see if taxes can be cut! JUST FREAKING DO IT!!!! There are millions in budget cuts that need to be made. Stop stealing from the people!
By CobbGOPer
March 26, 2007 4:35 PM | Link to this
They want more time to put together studies that will show that “risky” tax cut schemes will endanger the state revenue stream. Don’t hold your breath, folks, this is a stalling tactic.
By Mike Jones
March 26, 2007 4:49 PM | Link to this
Georgia Goverment. Including Gov. Perdue House and Sentate. Cut the spending on Pet Projects and Pork. How come the People who work for the State of Ga. are the only ones getting pensions while the rest of us get 401K’s.
By John
March 26, 2007 4:50 PM | Link to this
Reducing taxes will only assist the politicians in getting re-elected. Everyone wants taxes to be reduced; no one wants to pay taxes. However, there is a need for money to maintain the state’s infrastructure. The key thing is to have the proper team in place that can manage this for the benefit of the state. This is always the main problem with taxes. The preparation of tourist type attractions requires capital. Other infrastructure improvements required capital. Taxes are a necessary evil to maintain a viable community.
By Darrel
March 26, 2007 4:53 PM | Link to this
Remember that the next Legislative session falls in an ELECTION year. It will be easier to remember the lies then as compared to if they do nothing else now. You know, less time to forget what they foul up. Besides, maybe it’s time to “clean house” as in vote out those that are currently in no matter which party they represent and put so new people in there who MAY actually represent the people of the State of Georgia. That is rather unlikely, though, I know. It is time to rout the rascals, though, and toss out the “Perdue-ites”. Even as a Republican, I’ve had enough of what is supposed to be representing me.
By TL
March 26, 2007 4:56 PM | Link to this
I say we need to make them to pass a law that would require them to work a normal 40 hours workday all year long. I don’t see the normal average Joe taking the summer off from work. This is why the government does not get anything done.
By alan from Atlanta GA.
March 26, 2007 5:04 PM | Link to this
Well the state legislature and gov. purdue have done it to us again. I wonder how many lobbyists were against tax cuts. Is that why we have to wait, wait and wait. someday sonny will be 65, I hope he has to pay and pay and pay. As a republican, I am not only disappointed but ANGRY. Wait intil the next election.
By newkid
March 26, 2007 5:05 PM | Link to this
Two thumbs up for income and sales taxes as replacements for property taxes. The 100 year old approach of using taxes from real property to pay for some forms of government is broken and badly in need of repair. Perceived property value ONLY produces income when the property is sold, yet it’s taxed EACH YEAR as if it’s producing cash flow EVERY year; cash flow that property owners need to pay the assessed taxes. This nonsense is resulting in millions of hard-working homeowners (and those already retired) literally loosing their homes because they’re being taxed not based upon their incomes and their consumption of goods and services, but based upon the PERCEIVED VALUE of their homes. It’s an epidemic that threatens to dislodge thousands of middle aged and upper aged Georgians from their homes in rapidly growing areas in the years ahead. They’ll be faced with choosing between using what income they have for food, medicines, and a few pleasures, or sending an ever-increasing property tax check to the likes of Vernon Jones to fund a county budget that’s growing at 10%+ per annum. When was the last time your retired parents income (or yours) grew at 10% per annum? One’s ability to pay is based upon one’s income, not the value the county attaches to our homes.
By DS
March 26, 2007 5:08 PM | Link to this
How about a Fair Tax Plan for Georgia?
By Elsie Neal
March 27, 2007 8:20 AM | Link to this
I knew it would be too good to be true. Our politicians only pass into law what will benefit themselves. It is time to clean house and send all the crooked, lying politicians back to work like the rest of us. We need to take care of our senior citizens and legal Americans before we give our hard earned tax money to the illigals. Also we need to change one of our laws. Children born to illigals in the USA should not give the parents automatic legal status to get all the privileges true US citizens have earned. Send all the illigals and their children back to their country and you will stop a lot of wasted spending and crime in the USA.