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Tax cut smoke and mirrors
It must be an election year. Georgia legislators are tripping all over themselves to see who can pass tax cutting legislation.
Some might call that “conservative political values.” But a better term might be “pandering to voters.”
The current legislative tax cut war began last year when House Speaker Glenn Richardson, a likely candidate for governor in 2010, went on the speaking circuit to promote his plan for the state taking over all local taxes by abolishing property taxes and replacing them with a sales tax hike which he and he colleagues would control and dole out to county and city governments.
The problem with that plan was two-fold: First, it gave tremendous power to the state while it weakened local governments, drawing the opposition of every city, county and school official in Georgia. Second, on his speaking tour, Richardson insulted anyone who questioned his plan, showing himself to be arrogant and abrasive. He didn’t ask for input, he dictated.
That plan died and Richardson replaced it with a couple of other watered-down efforts. In the end, he pushed through the House a plan to abolish taxes on cars, a move that wouldn’t hit the state government very much but that would hit all local governments, forcing them to raise taxes on homes and real estate to make up the difference.
But Richardson’s plan was received coolly by Gov. Sonny Perdue, whose veto pen could kill it.
Meanwhile, over in the state Senate, Lt. Gov. Casey Cagle, another potential candidate for governor in 2010, stood on the sidelines until this week. On Tuesday, he announced his tax plan, which is to cut the state income tax by 10 percent over the next five years. That plan would not affect local governments, as the plans Richardson has promoted would do.
Cagle’s move was clever political poker that left his rival, Richardson, sputtering. Richardson wants to lead a tax cut as a basis for a run at governor, but he wants to make that cut not from the state, but rather from local governments. It’s always easier to cut the other guy’s taxes while leaving your own untouched.
Cagle called his hand, in effect saying, “OK, let cut taxes, but let’s cut state taxes and not local taxes.”
For average citizens, Cagle’s proposal would have the biggest impact. But both plans are likely in danger of a Perdue veto due to the slow economy and the impact any kind of tax cut would have on government revenues.
For the most part, all the talk of cutting taxes is a game of smoke and mirrors from those seeking leverage to make a bid for governor in 2010.
England responds to critics of watering bill
BY REP. TERRY ENGLAND
Tuesday of last week marked the 30th day of our 40 day legislative session. This is a crucial day because it is the day that a bill must have passed at least one body in order to have a chance of becoming law.
I would like to comment on a piece of legislation that I have been criticized locally for sponsoring. HB 1281 deals with outdoor watering restrictions that are placed by local authorities, whether it is cities or counties.
First let me say, I appreciate our local water utility folks and the job they do and in no way has this ever been aimed at the job they have done during this drought. They have managed our water resources tremendously well; unfortunately that is not the case across the State. We have had some very bad actors in parts of the State during the drought that have failed to plan ahead. There have been those that for no reason have enacted complete outdoor watering bans because they did not want to answer customer calls asking about restrictions any more.
One metro area city water utility management personnel asked their city council to go to a complete outdoor watering ban and when asked what the justification was, the reply was, “it just seems like a good idea” they had no reason to do so. Things like this have cost 35,000 Georgians there jobs in the Green Industry since last August.
I have been working closely with the Georgia Municipal Association to make changes to the Bill as we get it ready for its journey through the Senate. The other parts of the Bill that they are excited about deals with the ability to ask to come out from under the State imposed reduction mandates and drought level imposed restrictions in communities that may be a part of the drought area but have plenty of water to use. Currently and during the last 9 months, there have been many communities asking to come out from under these restrictions but under current law they cannot. This has had a major impact on their budgets as they count on water sales for large portions of their operating revenues. There are also emergency measures that I have added to the Bill also to alleviate many concerns I have heard. I would be more than happy to discuss this or any Bill you may have questions about.
You may have heard that Governor Perdue has lowered the revenue projections for this state. For us in the legislature, this means that we must revise the budgets we have been working on and make spending cuts in some areas.
While this does mean we have less money to fund our priorities, I again reiterate that the House remains committed to funding our education needs and we are working diligently to get those funds to our schools. As a member of the Appropriations Sub Committee on Education, I can tell you that we are working hard to get you your money’s worth.
God Bless you and your family.
Representative Terry England represents parts of Barrow county in the House of Representatives. During the Session he may be contacted at: 501 Coverdell Legislative Office Building, Atlanta, GA 30334
Office: 404-656-0183
Email: terry.england@house.ga.gov
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