Georgia’s workforce has shrunk by 2.5% and unemployment has risen to 10.3%. Cue Rep. Tom Graves (R-Ranger) and his Jobs, Opportunity, and Business Success Act of 2010 (JOBS Act of 2010). Unlike another “stimulus” bill that has had lackluster results, this bill will help put unemployed Georgians back to work.
Graves’ JOBS Act is comprised of two bills, HB 1023 and HB 1024. Rather than increase spending and amass more debt, this bill will get government out of the way of Georgia businesses. Discussing the economic downturn plaguing Georgia and the nation, Graves states that lawmakers “can either prolong it with regulation," or, "speed it up with creative initiatives,” which he has proposed with his JOBS Act of 2010.
Key provisions of Graves’ proposal are as follows:
House Bill 1023
- Creation of the “Year for Georgia Entrepreneurs”: Allowing Georgians the opportunity to start a new business with no state fees could remove the only hurdle many entrepreneurs need to begin.
- “Angel Investor” Tax Credit: An income tax credit of up to 50% of an investment made in small or start up Georgia businesses with 20 or fewer employees. The income tax credits would be available after 2 years of investment. The total “Angel Investor” tax credit pool would be limited to $10 Million per year (adjusted for inflation).
- Quarterly Credit Towards Unemployment Insurance Tax: For each eligible employee hired who is receiving State Unemployment benefits, a company will receive a quarterly credit towards their unemployment tax.
- $2,400 Tax Credit for the Hiring of the Most Difficult to Employ: Any Georgia company which hires a person who is difficult to employ and is currently receiving unemployment benefits and has been unemployed for at least four weeks, shall receive a tax credit of $2,400 after 24 months of consecutive employment.
- Elimination of the Net Worth Tax: The net worth or intangible tax is a hold over from a 1930’s law that taxes wealth accumulation. The Tax Foundation advocates the elimination of this tax as we are only 1 of a handful of states that still retain it.
- A Triggered 50 Percent Reduction of the Capital Gains Tax for all Georgia Taxpayers: Georgia currently has the 15th highest Capital Gains tax in the country and the 2nd highest in the Southeast, with two of our neighboring states at 0%.
House Bill 1024
- Gradual Phase out of the Sales Tax Deposit on Small Businesses:
Phases out an outdated tax deposit that is required for Georgia Businesses. Once implemented, this will return nearly $200 million of working capital to Georgia’s small business that is held on deposit with the state.
This is not Graves’ first attempt at passing his JOBS Act. Last year he introduced the Job, Opportunity and Business Success Act of 2009 which was vetoed by Governor Sonny Perdue.
I addition to helping Georgia recover from this recession, Graves is running to represent Georgia’s 9th congressional district and has signed the Taxpayer Protection Pledge in his bid for that seat.