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AJC.com > Legislature > Blog > Archives > 2007 > April > 19 > Entry
DEL.ICIO.USHouse Republicans introduce flat tax plan
The Atlanta Journal-Constitution
Setting the stage for next year, House Republican leaders introduced a sweeping proposal Thursday to overhaul Georgia’s tax code by eliminating most taxes in favor of a flat income tax and sales tax.
The proposal from House Speaker Glenn Richardson (R-Hiram) would eliminate all state, county and city property taxes, and all taxes on fuel, insurance premiums and estates in favor of a so-called “fair tax.”
The fair tax would include a 5.75 percent income tax and a 5.75 percent “business value added tax,” or sales tax. Georgians essentially pay a 6 percent income tax and 4 percent sales tax now, along with local property taxes.
Richardson was leading the floor session this afternoon and was not immediately available for comment about his 38-page bill.
But during previous interviews, Richardson has declared the state’s taxing system is broken.
“I’m convinced that the tax structure that has an income tax, sales tax and property tax is hurting our economy,” Richardson said in an interview in December. “I’m going to try to do everything in my power to keep Georgia’s economy moving forward positively, reducing the tax burden on citizens and encouraging economic developing so that our people have jobs.”
A spokeswoman for Richardson said the speaker introduced the bill today along with several other House Republican leaders with the expectation that it would not come up for a vote until next year. Legislators plan to discuss the idea over the summer.
The idea comes from a former economic policy adviser to President Reagan whom Richardson recently hired to study overhauling Georgia’s tax system. Richardson is working with Arthur B. Laffer, an economist considered by many as the “father of supply-side economics.” Along with Laffer, the speaker has hired Donna Arduin, a former fiscal advisor to several governors, including Arnold Schwarzenegger of California and Jeb Bush of Florida.
Richardson’s political action committee, MMV Alliance Fund, is paying Laffer and Arduin’s firm the initial $50,000 cost of its study through private donations.
Cosponsoring the bill with Richardson are House Majority Leader Jerry Keen (R-St. Simons Island), House Speaker Pro Tem Mark Burkhalter (R-Alpharetta), House Majority Whip Barry Fleming (R-Harlem) and Ways and Means Committee Chairman Larry O’Neal (R-Warner Robins).
Permalink | Comments (1) | Categories: politics
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By dpb
April 20, 2007 8:56 AM | Link to this
This is not the FairTax and should not be described as such. Income taxes and Value Added Taxes are not what the FairTax is about.