Thursday, January 10, 2008
News Mayors speak out against the speaker
Posted by John F. Sugg on Thu, Jan 10, 2008 at 8:51 PM
Mayors Shirley Franklin of Atlanta and Ken Steele of Fayetteville told the Atlanta Press Club today that Georgia House Speaker Glenn Richardson's tax plan for the state spells disaster for cities, counties and schools.
Franklin was the headliner at the club's luncheon, but she relinquished most of her time to Steele, who spoke on behalf of the Georgia Municipal Association, which, along with counties and school districts, is doggedly opposed to Richardson's scheme. The speaker would scrap property taxes -- the most stable tax source -- and replace them with a greatly increased state sales tax. Sales taxes are notoriously volatile, especially in economic downturns.
"Here's what our expenses are," said Steele, holding his thumb and index finger far apart. "What happens when the sales tax produces this?" He narrowed the gap between digits. "I don't think the state is going to reduce its spending."
Steele wondered why Richardson is proposing his House Resolution 900 at a time when the state is confronting many real problems -- the water crisis, congestion, the always-second-rate education system. "Why would we want to send all of the money to the state Capitol to redistribute?" Steele pondered.
He didn't answer, but I'd bet most in the audience at the Commerce Club could guess. It's all about power. Ending property taxes would help the wealthiest Georgians and corporations. And the sales tax would dump the tax burden onto groups such as the elderly, renters and the poor.
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