AJC.com > Opinion > Opinion Talk > Archives > 2008 > March > 17 > Entry
Can Ga. Afford $750 million tax cut?
The Atlanta Journal-Constitution
Gov. Sonny Perdue opposes House legislation that would eliminate property taxes on cars. He called the tax cut “pandering” to voters in an election year and worries that it could hurt education and health care programs. An AJC editorial today takes a similar position. But State Rep. Mark Burkhalter, a Republican from Johns Creek, argues that the tax cut will boost the state’s economy, leading to more revenue. Who is right?




DEL.ICIO.US


Comments
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By Fletcher Helms
March 17, 2008 8:16 AM | Link to this
Most tax cuts have generally helped the economy. We have the lottery, Tenn. and Fla. have no state income tax. If spending could be controlled, there would be plenty of money for the state, similiar to the federal situation.
By Darrel
March 17, 2008 8:23 AM | Link to this
Normally, a Republican “tax cut” will help the boost the economy if it is restricted to persons making over $100,000.00 per year or more. No Republican should ever propose a tax cut to help people making any less as that will only “hurt” the economy. That is why Gov. “Sonny” Perdue opposes the elimination of property taxes on vehicles. Afterall, do you want to give the “peons” something? Keep them down & broke!
Oh, I’m a life-long Republican, and that’s the way I see it………..NOW!
By Matt K.
March 17, 2008 8:24 AM | Link to this
I would tend to agree more with Governor Sunny, and I fail to see how saying, “We need to cut education because we need to spend less,” and then we go and spend twice as much on tax cuts. How will we keep this government solvent if we keep spending that way?
By OneForTheRoad
March 17, 2008 8:24 AM | Link to this
I will not put up with this pandering by our elected officials. The tax breaks I am proposing for wealthy seniors is just a ploy to lure them into our fair state where we will suck the life out of them like a leech. We will anesthetize them and drain them before they even know what happened — much like our beloved brethren on wall street have been doing for years.
Here’s to preying on you.
Sonny.
By Bill
March 17, 2008 8:28 AM | Link to this
Sonny is worried about this tax cut hurting education programs?? Ha, Education in this state is pretty much bottemed out and how about controlling spending for a change to buffer the cut. Do you think people who save on the car tags will not spend the money somewhere else in the econemy? Typical politician can’t stand to see some of their (our our) tax money removed from the trough.
By Capt Bill
March 17, 2008 8:41 AM | Link to this
What Darrel said!!
By ConservativeDem
March 17, 2008 8:45 AM | Link to this
I do not understand how education is affected by tax cuts. I was under the impression that the lotto was covering education really well. Are the state officials using the lotto money for other purposes? I DO believe citizens working for the state and local governments providing services and assistance are a need. However there are programs out there that need to be fixed. We have too many give-a-ways for so many people who do not give a return on the tax payer’s investment.
By hrw
March 17, 2008 9:08 AM | Link to this
Withstanding is the needs to pay Federal, State, County Taxes. We are taxed to death. We must not let the color of a dollar bill continue to drain the working men and women no matter their status. Just because the Car Tax has surface; it should have been drop a long time ago because its double-payments for something that is already paid for. Doing away with this tax will perhaps hurt or help the tax payers; but if you hear all of the different opinions coming from our seated government; it will hurt. We never see any of that tax monies and we don’t even know whey we continue to pay it!
By gttim
March 17, 2008 10:46 AM | Link to this
“Most tax cuts have generally helped the economy.”
Uh, no. The greatest growth of our economy happened when we had the highest marginal tax rate. Check history and quit making stuff up! Tax cuts always seem to help the very wealthy not pay their fair share, and shift the tax burden on the less wealthy. The wealthy have more to protect (a large portion of out taxes go to protection of property, via the police, fire and military), and make more money from the use of the country’s infrastructure. Ditto with corporations. We protect them and allow them to make money using our infrastructure. They should pay more taxes and the government should stop trying to help them avoid paying their fair share.
The GOP has been on a tax cutting frenzy during the Reagan, Bush and Bush administrations. The national debt has surged! Tax cuts have not increased revenue, and the government has certainly not reduced spending. Until we pay off our debt, rebuild our failing infrastructure, safeguard our children’s future and have decent reserves set up for emergencies, we do not need to e reducing taxes.
By Avery
March 17, 2008 11:08 AM | Link to this
Property taxes on automobiles are a voluntary tax. If you want a lower car tax, trade in your BMW for a Mercury.
“Free Market” Republicans generally claim to be in favor of these types of taxes, but election year pandering is not above any party.
By ViewFromMidtown
March 17, 2008 11:10 AM | Link to this
Let’s get real here; this “tax break” that Richardson and Burkhalter are proposing really only benefits the rich and the over-extended upper middle class who drive around in new gas-guzzling, over-priced monster SUVs, sports cars, and other luxury vehicles. The poor who don’t own cars certainly won’t get a break and the poor and middle-class who are driving used and older cars will see little or no benefit as the tax on the depreciated value of the vehicles they drive is relatively small.
Let’s face it, if you’re stupid enough to buy something like a Hummer, you deserve to be paying the taxes on it.
By GaLiberal
March 17, 2008 11:14 AM | Link to this
First off this not a ‘tax cut.’ This is a tax shift from the entitlement elitists anti-tax whiners that Mark Burkhalter represents to the working poor and the middle class. The Burkhalter whiners are buying necessities like Escalades and Hummers which are high dollar vehicles so they will get a huge tax refund. The poor and the middle class are spending the majority of their income on stupid things like food and gas so they will finance the tax reduction for those that can most afford to pay. The Rethuglicons continue to lie that it’s a ‘tax cut’ because voters buy it like snake oil.
Second, it’s not good for the economy. Tax cuts are short-lived inflationary injections of money and have been proven to have no long-lasting effects. In fact, studies have shown that tax cuts have to be paid with higher taxes later which totally negates their small economic benefits. Like the Bush tax cut, only the very rich will get much from this pandering by the Rethuglicons. That’s probably the way they intended for it to work. After all the rich “create” the majority of jobs and “pay” the majority of taxes and are the most burdened and put-upon group in the country. We should all feel sorry for them and sacrifice ourselves by paying more taxes so they can pay less. At least, that’s the Rethuglicon logic at work.
When you vote Rethuglicon, you vote against your own best interests. And this ‘tax cut’ is living proof.
By G354ME
March 17, 2008 11:23 AM | Link to this
I do not understand how education is affected by tax cuts. I was under the impression that the lotto was covering education really well.
This type of ignorance is why the Politicans can play their games. The Lottery was created and remains to be used for certain educational programs, but not for education. The lottery mainly funds the HOPE scholarship for college and the Pre-K program. These programs did not exist before the lottery, so they never took away from tax revenue.
About 10% of a schools budget and the county’s budget is from taxes collected on motor vehicles. So imagine your budget is that of the schools, you barely can meet your annual needs and someone comes along and takes away 10% of your income. One of the proposals was for the State to take up the slack created, but because the State doesn’t have the money either, local Governments and Schools will be asked to suffer.
The average tax paid on a vehicle in Georgia is less than $90. The ones most effected by this proposal are the rich. Maybe it isn’t fair that the Porsche and Mercedes driver’s of the State that mainly send their children to private schools should have to help support public education. But “peons” as myself should not be duped into believing this will actually help me. Heck because of the Statewide trauma fee added to the price of a tag ($10), I will be paying a higher fee on 2 of my vehicles than I paid in taxes and I’ll never need these services because I carry insurance. The trauma fee is to support free health care.
As to “double taxation”, that exist is all forms today. If I earn a salary, I paid State, Federal, SS, and Medicare taxes. What I have left pays my bills. Has anyone actually looked at the fees on their phone bill? I currently pay over 30% mandated fees (another word for taxes). You notice the taxes and fees on your electrical bill or gas bill? Then we have sales taxes on what we buy with what we have left. These are are taxes on top of taxes. It is just a fact of life. If you wish to live in a “Free society” where we have fire/police protection, public parks, public schools, a open judicical system, protection by our military, assistance in a weather/national emergency, etc. we will have to pay certain taxes. I’m there are some places in the world without taxes, and if you find those places you may want to move there. But I’ll happily pay the price for the freedom and security I enjoy.
BTW - we could do as the European countries and just charge $2 or $3 in gas taxes.
By KR
March 17, 2008 11:29 AM | Link to this
I’m all for tax breaks.
One of my cars is a 20 year old VW, so after the tax is cut and the trauma fee is added in, I’ll net a profit of about $9. Wendy’s here I come…
To enact a tax break, the legislature should be forced to disclose how their spending will be cut to a point that matches the projected revenue level after the tax break is fully in place.
I haven’t seen that yet.
By therealist
March 17, 2008 11:35 AM | Link to this
Nearly 50% of Georgia’s kids drop out before graduating high school.
The entire education system is the complete failure that needs to be cut..
By Lady G
March 17, 2008 11:43 AM | Link to this
For the most part Glenn Richardson plan was a flop before it began, but Mark Burkhalter has been trying to eliminate the taxes on motor vehicles for years and I’m sure he has a lot of support in his well above average income voting district. Suprisingly no one has checked to see just how rosy Mr. Burkhalter will come up smelling. I will give a hink in case the media wants to look. Don’t look under “Mark Burkhalter” for the vehicles affected. On no, that is the shadow. The real vehicles are listed under a different listing of his name (think middle intial as first name).
By Lady G
March 17, 2008 11:52 AM | Link to this
Nearly 50% of Georgia’s kids drop out before graduating high school.
This isn’t all the schools fault. In fact I place this blame on the no caring no involved parents. There are too many child bearing no working bums on the street during the day breaking into houses, selling drugs, and other criminal activity because the parents refuse to parent their kids.
By Sam Costanzo
March 17, 2008 12:11 PM | Link to this
As a loyal Republican, I was embarassed by Rep Burkhalter’s absurd “bithday tax” arguments in his recent AJC column. Comparing the economic effects to that of the President’s stimulus package is nonsense. He rightly points out that the $165 billion Federal stimulus package is projected to increase State revenues by $240 million. Applying the same calculus to $675 million of “birthday tax” relief indicates that the State could look forward to $1 million of additional revenue or a net loss of $674 million. To argue otherwise he will have to show how the spending pattern of GA auto owners differs from that of the Georgians who will soon be receiving stimulus checks from the Federal Govt.
Arguing that elimination of the “birthday tax” would be “one of the most progressive tax cuts ever adopted in Georgia” is equally absurd. To prove that he will have to explain how the working stiff with income of $20,000 driving a 1995 Honda would save more than a millionaire owning a $60,000 Mercedes and perhaps 2 or 3 additional vehicles.
It’s time for Republicans and Democrats alike to temper their enthusiasm for vote pandering tax cuts with a modicum of common sense.
By ConservativeDem
March 17, 2008 12:16 PM | Link to this
Many of you say the tax cuts help only the rich. What does that mean? The rich have more money and they put it away somewhere never to be used again? The money is gone forever in the minds of the liberal! I am sure the rich will never invest that money. I am sure no one will get hired. I am sure building will stop. I know that ideas will cease and research and development will end. And its all because the rich get tax breaks. Just think G354ME said I was ignorant. I thought college was education maybe I did miss the point. I sure am glad that I am not rich. I just could not figure where to hide all that money for all times.
By North Atl guy
March 17, 2008 12:20 PM | Link to this
…. If all the money from Lottery was really going to education, I doubt there would be a need for worrry. Could public education get any worse in GA ? The birthday tax is a PATHETIC TAX!! I doubt it affects Sonny one bit though.
By G354ME
March 17, 2008 12:49 PM | Link to this
Ignorance is not an insult. And while in today’s world college probably should be “basic” education, it is not. College education is optional education that is very rarely if ever completely paid for by tax revenue (yes I know many grants and other programs support colleges). But like private schools students attending college are expected to pay tuition and the lottery was put in place to pay the tuition for those that qualified.
And no the world as we know it will not end by creating bigger tax breaks. But it won’t inprove neither. I sold vehicles and never had a customer turn down a $20,000 vehicle because the tax was going to be more than the one they drove on the lot. The payments may have detered the purchase, maybe even the insurance premium, but never did the ad valorem tax stop the purchase. So I can almost guarantee it will not effect sales today. In fact with the price of fuel today, any savings will be to pay for gas by most people. Gas they already were buying.
But even though the rich will benefit the most from the elimination of this tax, they may end up being hit the hardest when the county has to raise the property tax rate on their expensive homes to make up the difference. What? You suprise that the taxes will need to be made up somewhere? So instead of paying $90 a year on your car, the average Joe will pay about $10 a month more on their house. At a time when foreclosures are at a record high, this is just what the economy will need. So those with money can swoop in and buy the property of those losing their homes for pennies on the dollar. That is where the rich will put their money.
By GaLiberal
March 17, 2008 12:52 PM | Link to this
North Atl guy said: The birthday tax is a PATHETIC TAX!!
Obviously you have not been in GA long, so let me fill you in on your ignorance. This is not a ‘birthday tax’ as you so inflammatory state. When I came to GA in 1981, this tax was due by March 31 statewide. When the metro area complained about late tax bills, the Democratic-controlled legislature changed the due date to the owners birthday. They could have picked some other scheme, but birthday is easiest for the taxpayer to remember.
Secondly, some counties get a good chuck of their operating income from this tax. So what will replace that lost income? Cut out a park or a school program? Raise other taxes? While you deride taxes as ‘PATHETIC,’ they pay for your roads and parks and schools and other services you demand from government. Like a good little entitlement elitist Rethuglicon, you just don’t like having to pay for them.
When you vote Rethuglicon, you vote against your own best interests. And North Atl guy is living proof.
By Athens
March 17, 2008 1:52 PM | Link to this
Governments jobs are to provide parks, roads, sewer, police, fire, and basic services. Local governments have ‘gone wild’ with overstepping their bounds these days. Put more money back in the taxpayers’ hands and everyone will be better off! Period. Governments have an open checkbook when it comes to adding and raising taxes. Some constraints are badly needed.
By Ed
March 17, 2008 2:41 PM | Link to this
Watch, in the end this will probably be be all about his long term efforts/interest/plan in getting Ad Valorem relief for his friends with private jets. Cars will be expanded to motored vehicles of all types.
A G-V is worth, what 30 million?
By GaLiberal
March 17, 2008 2:45 PM | Link to this
Athens said: Governments jobs are to provide parks, roads, sewer, police, fire, and basic services. Local governments have ‘gone wild’ with overstepping their bounds these days.
Where governments have ‘gone wild’ as you say? Land for parks has become very expensive. Police and fire salaries are increasing. It’s more expensive to maintain roads, water, and sewer systems. So of course you have to pay more taxes. Like it or not, taxes are how you get these basic services you demand. They aren’t given out for free. I guess governments could first build a road then charge a toll or put in a part then charge a use fee. But everyone knows that doesn’t work so the only option is collect the taxes to pay for the service or don’t provide the service. The only place “constraints are badly needed” is on the unreasonable Rethuglicon demand that government provide these services for free.
When you vote Rethuglicon, you vote against your own best interests. And Athens is living proof.
By Concerned Democrat
March 17, 2008 2:49 PM | Link to this
This tax cut on automobiles is not really a tax cut at all. What about the extension of sales tax on 175 new services to offset the revenue from auto tax? Sales tax is a distribution to the poor and not the rich. Everyone needs a haircut for example and by adding tax to this service it just adds to the burden of the poor. I think we’re all getting a hair cut one way or another.
By Charles
March 17, 2008 9:59 PM | Link to this
GaLiberal ….. you need to stop drinking the MoveOn.org KoolAid. Tax cuts have always brought results in bolstering our economy. Even your icon JFK knew this!
The Tax and Spend Democrats will only bring more suffering and pain - especially to those who don’t “use” the “transfer of wealth” systems that are abused by the dregs of our society.
By Road Scholar
March 18, 2008 8:16 AM | Link to this
Good point Ga Liberal concerning toll roads. There is a movement to not only collect tolls, but to also congestion price your use of the roadways. As congestion rises, so does the toll rate charged per mile. With electronic tolling this is becoming possible.
see the article in:
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/16/AR2008031603085.html?hpid=moreheadlines
The revenue collected by the ad valorum tax is used by the local government for local transportation projects, to subsidize teachers salaries since the state only pays a basic rate (if you haven’t noticed, the cost of living in Atlanta and other major cities is higher), and for other programs. If the Ad Valorum tax is removed, the state says they would distribute state revenues to make up the shortfall. Yeah! Oh Really? So now the state is the local governments banker, or better put, trustee in determining what the locals actually need. Give me a break. Local control should be maintained to ensure your fair share of revenues is received and used for local purposes. Also, has anyone noticed that state revenues are down; where will they get the money?
Also on tax cuts, the repubs have cut taxes (mostley for the rich) and now we have a spending crisis. Not only is cash flow reduced, but by following the repubs way of borrowing to be paid by future revenues, this has overstretched the financial markets. Make a buck today, screw tommorrow!
The ability to own a vehicle is not a right, it is a decision that one must make.
Remember, Georgia only receives up to 92% of the Federal gas tax we pay here in Georgia. The state gas tax has not been changed for at least two decades and is not indexed to inflation. We need transportaion improvements including transit. How do we pay for them?
By bob
March 19, 2008 11:49 AM | Link to this
What kind of liberal moron would argue for higher taxes? Look at your pay stub (if you actually work). Add all the other hidden taxes in and you’re working for pennies on the dollar. Getting rid of the Ad Velorum is a great start. The bums and lowlifes of the state will still get to drive on the roads they didn’t pay for, they can play in the parks they didn’t pay for and will still get the same police and fire protection that I get as a taxpayer. As for the GaLiberal clown, if tax cuts don’t work, why does gov’t revenue rise every time one is enacted? Let’s face it. If you don’t own a car, you don’t pay ad velorum anyway. Stay on Marta, jerk.