Georgia's Tax
Commission and the State Spending Problem
By Susan Meyers, on Aug 27, 2010
As Georgia's tax commission
commences its work, word is it is considering tax reform that would ditch
corporate tax breaks, offer a property or income tax cut and turn to a
consumption tax or sales tax increase to fund state coffers.
Steve Forbes argues that the only fair tax is a flat tax (http://www.realclearmarkets.com/articles/2009/05/the_flat_tax_vs_the_fair_tax.html)
It absolutely unfair to penalize those who work hard and earn more
money, especially when they create much-needed jobs. And it is certainly insane
to nickel and dime every service including haircuts and vet bills with a
consumption tax.
Before lawmakers move on any tax policy, they need to look in the mirror.
Georgia government really doesn't have a revenue problem. It has a spending
problem. Until lawmakers embrace significant privatization efforts, layoffs
that match what we've seen in the private sector and define the role of
government by eliminating agencies through state Rep. Charlice Byrd's Sunset
Act, this tax commission is an exercise in futility.
The AJC pointed out last week that while the private sector has fallen off a
cliff in hiring, government continues to hire in Georgia: http://www.ajc.com/business/government-jobs-grow-despite-595574.html
The road to socialism in Georgia begins with every check cashed from the
federal government. Each time a federal check arrives, it is like giving state
lawmakers another shot of whiskey. Fiscal sobriety is nowhere in sight.
I predict more chaos such as what ignited around the GREAT plan if the next
General Assembly doesn't embrace significant spending cuts before ever talking
about tax reform.
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