Tuesday, January 10, 2012
Guv'ment Deal's Gold Dome agenda focuses on taxes, includes cash for Savannah port, reservoirs
Posted by Thomas Wheatley @thomaswheatley on Tue, Jan 10, 2012 at 11:22 AM
Gov. Nathan Deal this legislative session plans to push a jobs program that includes cutting the sales tax on energy used in manufacturing and making major public investments in reservoirs and a deeper Savannah port.
“In these challenging economic times in which jobs are portable, we must do more to compete,” Deal said in a statement this morning. “It is my goal to make Georgia the no. 1 state in which to do business. The Georgia Competitiveness Initiative Task Force developed a set of tax structure proposals that we believe will give Georgia an edge over other states. We believe this will result in more Georgia companies expanding their footprint here.”
The initiatives, which the governor introduced at this morning's Eggs n' Issues breakfast at the Georgia World Congress Center, include:
· The removal of the sales tax on energy used in manufacturing. “In an age of much higher energy costs, this will impact a large component of manufacturers’ overall cost structure and vastly improve the competitive position of our producers,” Deal said. “Today, in executive offices right here in Georgia, business leaders are making the business decision to expand manufacturing activity and facilities in neighboring states. Every time they make that decision, we miss out on new investment in our communities and new job opportunities for Georgians.”· Sales and use tax exemptions for construction materials used in projects of regional significance. “The result is simple but powerful: local governments have more options to incentivize investment and job growth. When it comes down to Georgia versus Virginia or Florida, the competition is tight. It often goes down to the wire — even into overtime — and this is one field goal Georgia can’t afford to miss.”
· Modernize Job Tax Credits and Quality Jobs Tax Credit program. “We are proposing to decrease the quality job creation threshold from 50 jobs to 15,” Deal said. “This will reshape the landscape in Georgia for small business owners. This will help start-ups get off the ground in those critical early stages.”
Worth watching: what programs the state will cut to make up for these cuts and credits. And the discussion over whether businesses prefer a state with lower taxes or one with functioning schools, transportation systems, and quality-of-life for their employees.
The governor's also pledged $46 million in the state budget to help pay for reservoirs and an additional $47 million in bonds to fund the deepening of the Port of Savannah. The state has already contributed $136 million to the port expansion. Deal and Mayor Kasim Reed have made trips together to Washington, D.C., to lobby for the project, which supporters say is necessary to accommodate and woo larger ships from docking at other ports along the East Coast. (I've dubbed the proposal the "Engineer Employment Act." Feel free to steal that if you'd like.)
Also worth noting: He's stressing that lawmakers not tinker with the upcoming T-SPLOST referendum, which some senators and reps want to push back to November. Or, as some Cobb County politicos have signaled, overhaul the measure which could generate $6.14 billion for new roads and transit projects in metro Atlanta.
Comments (1)
Showing 1-1 of 1
And weren't they talking about addressing the budget shortfall by putting the State Sales tax back on groceries and other essentials? Hope they aren't going to do these business tax cuts on the backs of the middle class and poor.
Though even if they don't bring back the grocery sales tax, we are doing that by proposing an UBER Regressive* Transportation Sales tax while cutting energy sales taxes and other taxes for Businesses. And aren't we trying to encourage more energy efficiency? why cut the sales tax on energy? If there is justification for a business tax cut do it another way.
So here's the score.
1. The state still won't fund transit.
2. The State wants us to pay for new roads that will lead to more energy consumption by taxing a gallon of milk and the rest of your essential groceries.
3. Meanwhile, the state will also be discouraging energy efficient investments by businesses by eliminating the sales tax on businesses for their energy costs.
Shouldn't this put Georgia in the running for winning the award for the Biggest F YOU to the planet, Polar Bears and Trade Deficit Reduction efforts (reducing use of foreign oil) ?
*UBER Regressive because the grocery tax is very regressive, but its amped up to 11 on the scale of 10 by exempting Delta Airlines, exempting all but the first $5,000 on a car purchase - so the Luxury Car (BMW, Bentley, Massarati etc. folks get the biggest tax exemption).
I just don't get it, at what point do people recognize what's going on here? I feel like I'm taking crazy pills. Taxation on the wealthiest is at an all time low yet the trickle down is still just yellow, sticky and smelly! And they want to do more!
like
dislike
Latest in Fresh Loaf
-
Vernon Jones wants to return to the Gold Dome and other interesting qualification tidbits 1
Qualifying period ends, dust settles, campaigns begin
-
Suspects in Pittsburgh gay bashing slated to go to trial Tuesday
The men accused of beating Brandon White in Southwest Atlanta already headed to court
-
Film Clips: Men In Black 3
Men in black are back, Chernobyl's tourism industry is booming, and music festival romance all this weekend 'at the movies.'
- More »
More by Author
-
So that Obama-riding-a-unicorn photo that's floating around the Internet... 3
Taking ownership of the 2008 CL cover
-
More on Georgia's food deserts
It's not just geography, researcher tells WABE
- More »
