Jobs are everybody's priority in governor's race

Double-digit unemployment has all the candidates for governor this year touting plans to create jobs and attract new business to the state.

Many of them want to use the tax system to give breaks to companies that hire or to potential investors. Virtually all of them talk about working to attract more biotech and other high-tech industries. And some want to create jobs by increasing government spending.

Creating work is such an important issue because the state has lost about 337,000 jobs since the beginning of the recession, according to the state Department of Labor.

But Roger Tutterow, a Mercer University economist, said there is a limit to what the state can do to create jobs.

“The economic pain we’ve been through was a national recession,” he said. “It’s important not to overstate the amount we can stimulate the local economy.

“That being said, there are certainly opportunities to ensure that as the economy gains strength, that Georgia maintains or improves its competitive position against other states in the region.”

The Republican gubernatorial candidates, in particular, want to do that with tax cuts and tax breaks. Some of those are also backed by Democratic candidates. Democrats emphasize improving education, fixing the stagnant transportation system and solving the metro Atlanta area’s water problems as keys to attracting businesses to the state.

Below are some of the proposals the leading candidates are making:

REPUBLICANS

Former U.S. Rep. Nathan Deal: He wants to cut the corporate income tax and to initially exempt some startup businesses from corporate income taxes. He also favors eliminating the corporate net worth tax and allowing local governments to exempt their local businesses from inventory taxes. Like most of the other candidates, he hopes to establish Georgia as a leader in biotechnology. He says he will work to ensure venture capital is available to allow innovative biotech and medical device companies, among others, to develop and grow.

Former Secretary of State Karen Handel: She says she wants to overhaul the state's tax system, eliminating the energy tax on manufacturers and the state income tax. That would likely mean Georgians would pay higher sales taxes and taxes on more goods and services. She also would let state retirement funds invest in startup companies. She wants to establish a tax credit for investors in certain small startup companies. That was something in a bill that passed the 2010 Legislature but was vetoed by Gov. Sonny Perdue. Handel also advocates expanding the OneGeorgia rural economic development loan program to more counties. Currently it's in most counties other than the core metro Atlanta counties. She said she would cut unnecessary and duplicative regulatory red tape through a comprehensive review of Georgia's regulations.

Former Senate President Pro-Tem Eric Johnson: He has proposed eliminating the sales tax on energy used in manufacturing, a major expense for some businesses like the carpet industry. Johnson wants to get power companies to burn pine tree pellets, helping the forestry industry. He hopes to expand the nuclear power industry in Georgia and supports drilling for oil off the Georgia coast. He would, at least temporarily, put much more money into transportation projects, creating road-building jobs. And he wants to let state retirement systems invest in things such as high-tech firms, providing capital for those businesses.

Insurance Commissioner John Oxendine: He wants to eliminate the state personal and corporate income taxes. That, he argues, would spur more investment and make Georgia more attractive to people and businesses coming into the state. He wants to cut or eliminate several other taxes. Oxendine would have to raise the sales tax or tax more goods and services to pay for those changes. As governor, Oxendine said he would specifically target the insurance, bio-energy, biotechnology and telemedicine industries and would work to increase capital to startup businesses.

DEMOCRATS

Attorney General Thurbert Baker: He says he can create 100,000 jobs through several moves. He wants to set up a fund to attract biotech firms and give them access to the specialized space they need to run their businesses. He would use tax credits to entice individuals and companies to invest in state businesses. He advocates allowing startup businesses to defer their state taxes for their first two years in business. He would create a $50 million "deal-closing fund" to give the state the money it needs to provide incentives for companies to relocate to Georgia. And he would create jobs by using mostly federal money to build high-speed rail lines and by borrowing money to build reservoirs.

Former Gov. Roy Barnes: He says he could create 10,000 jobs for electricians, plumbers and others by retrofitting all state buildings and public schools for clean, efficient energy and water consumption. That would include things such as adding low-flush toilets. He would pay for it by borrowing the money. Jobs also would be created through transportation funding and fixing leaky water systems. He would work to grow the biofuel industry and create incentives to increase medical research initiatives in the state. Barnes said Georgia can also attract more out-of-state businesses by improving its image. That includes improving education, making sure the metro Atlanta area has enough water for future growth and fixing the area's abysmal traffic. He said taxes are not the biggest priority for businesses considering a move to Georgia. Education, he said, is.

House Minority Leader DuBose Porter: Like Johnson, he wants to pump up the forestry industry and rural economy by giving incentives for power companies to burn wood chips to create energy. He would create jobs in the metro area and suburbs by using federal matching money to start building a commuter rail system. He thinks the state should invest more money to attract eminent scholars in stem cell research and water resources. Porter has proposed paying for his proposals by dramatically improving state sales tax collections from businesses that are not now remitting or collecting sales taxes.