Gov. Nathan Deal outlined a three-part tax reform plan in his 2012 State of the State address that called for:
● Elimination of the sales tax on energy used in manufacturing. That move, he said, would have an impact on the overall cost structure for manufacturers and improve their competitive position.
● Implementation of sales and use tax exemptions for construction materials used in regional projects.
● Modernization of Georgia’s job tax credits and quality job tax credit programs so they can foster small-business growth and aid recruitment.
To date, the General Assembly has taken no action on the measures, but they will be addressed, said Brian Robinson, the governor’s spokesman.
GOP officials in several states this year plan to either reduce the personal income tax or flatten it. Efforts are under consideration in Oklahoma, Kansas, Idaho, Maine, Missouri and Ohio.
For example, the Oklahoma Tax Reduction and Simplification Act would cut income taxes in all brackets, simplify the tax code and move toward elimination of the income tax. The plan would reduce the current tax system from seven brackets to three, beginning in 2013.
Couples who make $30,000 or less annually would not pay state income taxes. Earners of $30,000 to $70,000 would pay a 2.25 percent tax rate.
Couples making $30,000 to $70,000 would pay a 2.25 percent tax rate. Couples who make more than $70,000 a year and file joint returns would be taxed at 3.5 percent as opposed to the current 5.25 percent rate.
Oklahoma would eliminate tax loopholes, credits and other exceptions to pay for the reductions. Gov. Mary Fallin has said that savings from reductions and economic growth fueled by the tax cuts also would make up the difference.
No income-tax states
Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, Tennessee, New Hampshire. These states rely on other revenue sources to pay for infrastructure. Florida, for example, depends heavily on sales taxes from its tourism industry. Alaska relies on petroleum revenue.
Sources: Associated Press, The Wall Street Journal and Tulsa World.
