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DEL.ICIO.USTaxes and Republicans: The pressure of real life on the Georgia GOP
The Atlanta Journal-Constitution
In 2003, the first move of a newly elected Sonny Perdue was to propose a package of tax hikes on booze and tobacco, to cope with a downturn in state revenue.
The move roiled newly empowered Republicans in the Legislature, and many called the governor everything but a child of God.
Five years later, we are finally getting down to business in the current session at the state Capitol. And no fewer than four measures that will be construed as tax hikes in someone’s election-year propaganda — all backed by Republican lawmakers — are on the table.
There’s the $1 per pack increase in the state tax on tobacco. And House Speaker Glenn Richardson’s $10 car tag fee to pay for a state trauma network. And two proposals, one launched in the House and the other in the Senate, would use a new sales tax to address, in part, metro Atlanta’s massive traffic congestion.
(We’re not even counting the 174 services that would be subject to a new sales tax, if Richardson’s effort to eliminate school property taxes succeeds.)
Sponsors of the first two measures point to offsets that negate the impact of the increases. Both transportation plans would merely give voters permission, through referendums, to tax themselves.
But that hasn’t prevented rumblings within GOP ranks, and not a little maneuvering among Democrats. It’s the burden that a political party inherits when it is tasked with not only winning elections, but actually running a government.
Competency costs.
Earlier this month, an explosion at a sugar refinery near Savannah killed nine and injured dozens. Only days later, Senate President pro tem Eric Johnson announced his support for Richardson’s $10 car tag fee, which would raise $73 million to support emergency treatment available in hospitals across the state.
Richardson has paired the tag fee with the elimination of the property tax on vehicles. To Johnson, semantics don’t matter.
“I don’t run from the tag fee being a tax. It would be a tax. But I have been a budget hawk on health-care spending, and on spending in general,” Johnson said. “On trauma, that is a legitimate duty for the state to participate in. No individual, no insurance policy can pay to have the helicopters on the ready and the patient system set up.”
The car tag measure was presented to the House Governmental Affairs Committee last week by state Rep. Ron Stephens (R-Garden City). The body of Tony Thomas, one of Stephens’ best friends dating back to high school football days, was the last recovered from that sugar plant.
“We’re at the brink of the trauma system collapsing,” Stephens said.
The committee approved the bill, but without the help of an unmoved state Rep. Mark Hatfield (R-Waycross). “I’ll vote against every tax increase that comes along,” he said. “It doesn’t matter whether its for transportation or trauma care. We need to work within the resources we have.”
Democrats are likely to support the car tag hike, for much of the cash raised would go toward Grady Memorial Hospital — although state lawmakers have been careful not to say how much.
Stephens, incidentally, is also a sponsor of the $1 hike in the state cigarette tax. “I don’t view it as a tax increase,” the lawmaker said.
Raising the price of a pack of cigarettes would reduce the number of people smoking. That, in turn, would lower the amount of money the state pays in Medicaid bills. And some of the $500 million raised could go toward tax credits to encourage Georgians to purchase health insurance.
House Republican leaders aren’t buying the argument, and H.B. 1197 is unlikely to move very far.
The House and Senate transportation plans are the most vulnerable to anti-tax sentiments, for each requires a two-thirds approval of the Legislature to win placement on the November ballot.
The House plan would impose a one-cent tax for transportation statewide. The Senate plan would permit single counties, or groups of counties, to impose the tax.
On Tuesday, House Democrats will propose a third way. The state current levies a 4 percent sales tax on motor fuel in Georgia. Three pennies on the dollar go to the state Department of Transportation. A fourth penny, worth $200 million a year, goes to the general fund.
House Democrats will argue that the fourth penny be permanently shifted toward transportation — not just for the repair and construction of roads and bridges, but for mass transit as well.
“This way, the money comes from current resources,” said House Minority Leader DuBose Porter of Dublin. “What we have here are tax-and-spend Republicans in Georgia.”
Somewhere on the second floor of the state Capitol, a governor has just allowed himself a small smile.
Comments
By Doug Craig
February 17, 2008 9:18 PM | Link to this
Maybe it is time to join the R3volution. Are you tied of the same politics. You need to support some one like Ron Paul Republican or a Libertarian candidate . We need more people like DR. No. You keep voting for the same type of people and you believe you will get something differnt.www.crazyforliberty.com
By Churchill
February 17, 2008 10:17 PM | Link to this
Ru Paul is a boob. All that cash raised, that stupid blimp, the dippy homemade looking signs, and just 16 delegates. Wow his message is truly powerful! Can you feel the energy America?
By white guy, i think
February 18, 2008 9:25 AM | Link to this
it’s black and white. don’t forget the republicans used to be the democrats. buba was a democrat from s.ga. and his claim to fame was siding with big business and the gas co.’s in deregulation. if it had not been for stan wise it would have been much worse. can you imagine being black and finding out you are kin to strom t. i can’t think of anything worse. buba looks like he may have some wood pile in him. wanna know who yo daddy is ? call this #. 404-656-1776. if you were broke down on the side of the road and could only stop one person. would it be a black or white person ?
By spence
February 18, 2008 12:53 PM | Link to this
Question - If a tax hike on tobacco results in fewer people smoking, therefore buying less tobacco; then how can it bring in more revenue? Is that not like having your cake and eating it, too?
By Craig
February 19, 2008 9:11 AM | Link to this
That Rudy endorsement was pretty bizarre, Dawg. And of course it didn’t do Rudy any good either. I know a lot of my Christian friends love Pat, but maybe some of them are starting to wise up a little.
By takemymoney
February 19, 2008 12:26 PM | Link to this
tag FEE? a fee is not a deduction on fed tax so why not go ahead and call it what it is, a tax. what I’d really like is all my money back i have been paying for tags the last 15 years when all i got was a 10 cent decal. the origin of this fee was the actual cost of a new license plate. the politico crooks just figured they could get away with taking the money and replacing the plate with
a very inexpensive decal. looks like the game just goes on!
By Tom
February 19, 2008 1:25 PM | Link to this
Guys (i.e., Jim and Bob), I realize this is “just a blog”, but could y’all not edit and/or write a bit better? I assume that H.B. 1197 is the new cigarette tax, but couldn’t you make that clear within the body of your blog entry?
By Churchilll
February 19, 2008 6:56 PM | Link to this
Churchilll is a boob.