Lawmakers in Atlanta are proving Texas legislators aren’t the only ones pursuing a pro-taxpayer agenda. Two bills under consideration in Georgia would go a long way toward jump starting the Peach State economy and putting the state’s nearly 400,000 unemployed residents back to work.
Georgia House Bills 481 and 482 seek to make the state more economically competitive. The legislative package, dubbed the Job, Opportunity and Business Success Act of 2009, was recently introduced by Rep. Tom Graves (R-Ranger).
The package represents a pro-growth stimulus package that stands in stark contrast to the stimulus plan passed in Washington. Rather than ramp up spending and inject the government into nearly every facet of the economy like the federal stimulus package, Rep. Grave’s plan involves no taxpayer money and boosts the economy by getting the government out of the way.
Key provisions of the plans are as follows:
– Complete phase out of the state corporate income tax over a 12 year span starting in 2012.
– Elimination of the state inventory tax.
The few states that have inventory taxes have been getting rid of them in recent years. Georgia is now one of only 13 states to levy this economically adverse tax. In fact, none of Georgia’s neighboring states have an inventory tax. Graves’ plan will remove this competitive disadvantage. Home to the country’s 3rd biggest port and the world’s busiest airport, Georgia is often referred to as the logistics capitol of the south. Elimination of the inventory tax will ensure that Georgia remains a major hub of commerce in the world.
– Suspension of the $100 business filing fee for one year. This exemption would apply to new filings for LLC’s, Limited Partnerships, and For Profict Companies. Additionally this package contains provisions that reward employers who create jobs.
Rep. Graves’ stimulus package has been well received in the state’s other legislative chamber. Senate Majoirty Leader Chip Rogers summed it up best:
"While the politicians in Washington, D.C., attempt to bankrupt our children and grandchildren through a socalled stimulus plan, we here in Georgia will lead the way on fiscal restraint and creating an environment where businesses want to set up shot."
Click "Read More" to view ATR’s official statement endorsing this package. For a pdf of the statement, click here.
Taxpayer Group Endorses Georgia LegislationJobs, Opportunity and Business Success Act of 2009 Provides True Economic StimulusWashington, D.C. – Americans for Tax Reform, today, announced their support for House Bills 481 and 482, together known as the Jobs, Opportunity and Business Success Act of 2009. The legislative package, introduced by Georgia Rep. Tom Graves (R-Ranger), is aimed at rejuvenating the state’s economy and job creation.Key provisions of the package include a 12 year phase out of the state corporate income tax rate starting in 2012 and an elimination of the state inventory tax. Georgia voters would have to approve the inventory tax elimination in a statewide referendum.“I applaud Rep. Graves for bringing these pro-growth, pro-taxpayer measures forward,” said Grover Norquist, president of Americans for Tax Reform. “This package stands in sharp contrast to the Obama stimulus plan. Rep. Graves’ plan will provide real stimulus to the Georgia economy, recognizing that the true stimulus lies in policies that encourage growth and job creation in the private sector rather than big government.”As it stands, Georgia ranks in the bottom half of the 50 state business tax climate ranking. Only 15 states have a higher state and local tax burden. Graves’ legislation has also been endorsed by the Georgia Chamber of Commerce, the National Federation of Independent Businesses, and the Georgia Retail Association, among others.
“This legislation will make The Peach State a much more attractive place to live, work, invest, and create jobs,” added Norquist.