Though not alone in their budget balancing struggles, the state of Georgia proposes a unique solution to their revenue raising issues. They propose reinstating the food tax, increasing the gas tax and lowering the tax rate for foreign companies who operate in the state.
While non-profit groups like the Girl Scouts worry about the effect a food tax will have on their ability to raise funds through their annual cookie sales, the state panel proposing this – and other measures – feels it is the only fair way to distribute the current tax burden.
The Special Council of Tax Reform and Fairness for Georgians insists that its recommendations will not actually not increase the revenue the state already collects. Instead, like the current sales tax, it is applied to what Georgians spend rather than what they earn, and lowering the tax burden for businesses will attract new jobs for Georgians.
Tax Cuts for Businesses
Taxing groceries and wringing more tax revenue out of the gas pump might be necessary given the dire economic times facing the state, but it’s hard to reconcile tax increases on necessities while proposing the need to decrease the tax burden on corporations.
The Republican-controlled legislature is considering a budget that includes tax cuts, but their new Governor isn’t as sold. Groups like the AARP have come down as solidly opposed, and Mandy Rafool of the National Conference of State Legislatures points out that no other states are considering a food tax this year.
So while Girl Scouts and commuters have to man up for the possible sacrifice, corporations might be spared for another year.
What Do You Think?
Politicians are calling for sacrifice, but shouldn’t that include businesses? Let’s hear your views.