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DEL.ICIO.USPerdue and his economists meet with senators to talk tax cuts and the economy
The Atlanta Journal-Constitution
Sonny Perdue and his team of economists went up to the fourth floor of the state Capitol on Wednesday afternoon to meet with members of the Senate. If the governor intended to talk that chamber out of pursuing a tax cut in the last six days of this session, it didn’t work.
The governor said he didn’t push the case himself. “Although the economists did indicate to them that they didn’t think — in a balanced-budget state environment — this was a good time to be cutting revenue when revenue was already on a downward trend,” Perdue said.
The governor said the economy continues to contract, but maintained that whether the word “recession” should be used is purely a matter for academics to debate.
The economy was the chief topic of discussion, but the governor’s revenue estimates were another. On Tuesday, Perdue sent this letter to House Speaker Glenn Richardson and Lt. Gov. Casey Cagle, accusing the House of passing a 2009 budget that was $17 million out of balance — and threatening to lower his revenue estimate even further. He’s already done it once.
“Oftentimes, conspiracy theories develop around here,” Perdue said. “That the governor’s trying to play games with the revenue estimate, to give us heartburn during the appropriations — and really I just wanted to share the facts as I get them.
“I don’t make up the revenue estimate,” the governor said. “I rely on trusted professionals to look at all the factors — of employment and housing and all those things — and come to a point.”
Lt. Gov. Casey Cagle invited the governor to speak with members of the Senate. Cagle said nice things about Perdue — but made it clear that he was still committed to a 10 percent cut in the state income tax.
“We still believe that that is good sound public policy. We need to make sure that we are able to put more money in each individual’s pocket,” Cagle said. “Whether we can get to an agreement with the house still has yet to be determined.”
Oh, and Cagle agreed with the governor on one thing. The alleged out-of-balance budget passed by the House.
“I firmly agree with the governor. The House obviously did not pass a balanced budget. It’s very unprecedented. For them to say contrary is somewhat perplexing,” Cagle said.
That ought to do wonders for House-Senate negotiations.
Majority Leader Jerry Keen of St. Simons Island spoke for the House leadership. “We sent over there a very fiscally conservative budget,” he said.
As for a tax cut, Keen said, “We could argue that the best time to give tax relief is in fact when the economy is slowing. Even the Democrats in Washington get that.”
Obviously, Keen doesn’t expect any support from the governor’s office. “The only way that Georgians are going to see a tax cut out of this legislative session is if its voted on in a constitutional amendment,” he said. That way, no gubernatorial approval is needed.
Comments
By GOP Tertium Quid
March 27, 2008 12:49 PM | Link to this
The Lt. Governor is the first major elected GOP official to call for a reducation in the state income tax, which is a burden to Georgia’s families and a drag on the state’s economy.
The Republicans in the Legislature and Governor Perdue have had more than four years to pursue a reduction in the Georgia income tax with its top rate of 6% that kicks in at around $20,000 and yet have done absolutely nothing in this regard other than to snipe at one another over House Speaker Glenn Richardson’s sales tax proposal, a plan that had no prospect of passage.
Let me suggest to my fellow Georgia Republicans that the Lt. Governor’s income tax plan represents a feasible proposal to reduce the burden on Georgia taxpayers that might actually make it to the Governor’s desk. Time is short, so get crackin’ or go back to private life where at least the only money you’ll be able to squander will be your own. This is the kind of “suck the taxpayer dry” mindset that I expect from Democrats becuase, well, they’re Democrats. The Georgia GOP can and should do better by Georgia taxpayers.