My top priority as governor is making Georgia the No. 1 state in the nation in which to do business.
That’s why, shortly after taking office, I launched the Georgia Competitiveness Initiative to brainstorm ideas to increase job opportunities. I wanted new strategies to retain existing businesses and to attract new investment. Because we compete with other states and even international peers for those coveted job-creating opportunities, this effort focused on increasing Georgia’s competitiveness.
The initiative pulled together a diverse group of business leaders from across the state and provided a venue for more than 4,000 voices to be heard. That broad input, representing every region of our state and sector of our economy, allowed us to develop an economic development strategy that makes sense for all Georgians. Through this process, we determined we could gain considerable ground on our peers through strategic tax reform. We are now proposing the following: an elimination of the sales tax on energy used in manufacturing; the exemption of sales and use taxes for construction materials in projects of regional significance; the modernization of Georgia’s job tax credits; and the further improvement of our schools.
Eliminating the sales tax on energy used in manufacturing will promote manufacturing activity in Georgia. Because the sales tax is meant to be a tax on consumption and not business inputs, this reform will resolve a situation in which our tax code has proved overreaching. This improvement will align us with many of our leading competitors and lower our manufacturers’ cost structure.
The ability to exempt construction materials for important job-creating projects from sales and use taxes, both state and local, will give us a powerful tool to attract large projects. This will expand our economic development toolbox and significantly impact the level of investment we attract going forward.
An improved package of job credits will enhance Atlanta’s competitiveness vs. peer cities such as Charlotte and Houston, while also helping our rural communities compete with peers in neighboring states. Also, by decreasing the quality job creation threshold from 50 to 15, we will create a more fertile environment for small businesses and startups.
Finally, because Georgia’s long-term economic development depends on what takes place in our classrooms, we will continue to make strategic investment in our education system. To enhance our workforce pipeline, we will focus on the following: expanding educational options for students and their parents; enhancing local control so that educators are empowered to lead their districts in the most efficient way possible; ensuring that our youngest learners are reading at grade level; broadening efforts to prepare students for skilled trade careers; ensuring that our schools are preparing students for careers or further study; and protecting the HOPE scholarship program.
Collectively, we believe these changes will bring us closer to our goal of being the No. 1 state in the nation for business.
Nathan Deal is Georgia’s governor.
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