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Legislative Recap: Tax Reform & CUT

Posted Sunday, April 10, 2011

Wow, my first legislative session is almost complete.  Day 37 was finished on Thursday, March 31st. With only 3 legislative days left there is still much work to be done before the session ends Thursday, April 14th at midnight. Day 40 is commonly known as Sine Die!

School spring break this past week was also a legislative break which provided  me a chance to catch up on constituent emails and read bills. Having received over a thousand emails in the past couple of weeks, I am proud to say that I am working hard to return every email from constituents in my district and I’m almost caught up. If you have a pressing issue please don’t hesitate to call me on my cell at 404-723-8989. If I miss you I will try to return your call as quickly as possible.

By far the biggest issue I have heard from constituents is the proposed tax reform bill. This subject has certainly become the biggest issue we have been debating under the Dome in recent weeks. Understandably there has been a lot of confusion from voters due to the many rumors and changes to the plan.

First let me share that the most recent bill will NOT tax Girl Scout cookies, gym memberships, veterinarian services, AAA Automobile Memberships, lawn care, haircuts, or Costco/Sam’s Club memberships.

The idea for a tax plan overhaul began last year when the House passed a bill forming a Tax Council comprised of an elite panel of renowned economists and businessmen tasked with studying our tax code, conducting hearings across the state and finally making recommendations to reform Georgia’s very old and antiquated tax system. The goal was to create the best possible environment for economic growth and jobs as we climb out of this recession. According to the enacting legislation passed last year, the Tax Council’s recommendations had to be submitted in the form of a bill. Of course, this didn’t mean we had to pass the bill as it was originally submitted.

Over the last two weeks there has been a lot of discussion regarding to what extent we should and can practically (pass House, Senate and get the Governor’s approval) go to implement fundamental changes to our tax code with the aim of positioning our state to be a major winner as we compete with other states seeking to attract economic growth in a post recession era. As is so often the case in creating legislation, this bill has changed almost daily and may still change until we see the final bill on our desk.

You can read a detailed analysis of the bill by Kelly McCutchen President of the Georgia Public Policy Foundation here.

The general idea is to move towards a broader flatter consumption tax (Fair Tax) and reduce or perhaps in the future completely eliminate the income tax. Currently we are struggling to compete against neighbors, Florida and Tennessee, which have NO income tax and Alabama with only a 5% income tax.

The latest proposal results in a 128 Million dollar net TAX CUT!

The bill includes a communications flat tax of 7% (cheaper for some and more for others depending on your provider), automobile service tax and sales tax on private sales of vehicles with an exception for family transfers. The plan results in a 23% CUT in personal income tax and several pro-small business measures to promote jobs such as removing energy tax on manufacturers to compete with surrounding states.

Earlier versions gave me serious concerns, but I have been pleased to see this bill evolve into a substantial tax cut for the citizens of Georgia. This process reminds me that even though  we can’t get everything we want, as a servant of the people I must continue to fight until the last moment for the best possible bill, and then when it comes time to vote I must ask myself,  “Are the tax payers of Georgia better off with this bill?” If the answer is, “Yes!” I vote YES.  Otherwise I vote NO.

You can be assured that if the final bill on my desk doesn’t result in a net tax decrease I will not support it. I remain adamantly opposed to tax increases, especially during these tough economic times.

This week we will be in session Monday, Tuesday, committee meetings on Wednesday and our final day of session will be Thursday.

You’re my boss and I work for you.  If you have questions or concerns please do not hesitate to contact me.  You can reach me at my Capitol office (404) 656-0325, cell (404)-723-8989, or email josh.clark@house.ga.gov.

Josh Clark
State Representative, District 98
612-E Coverdell Legislative Office Building
18 Capitol Square
Atlanta, GA 30334
O. 404-656-0325
C. 404-723-8989
www.votejoshclark.com

“Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has” – Margaret Mead

 

Filed under: Issues,News Articles,Press Releases — Josh Clark @ 11:42 pm


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