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NTU Urges Gov. Perdue to Sign JOBS Act
April 9, 2010
The Honorable Sonny Perdue
Dear Governor Perdue:
On behalf of the National Taxpayers Union's more than 8,200 members in Georgia, I urge you to sign into law HB 1023, the "Jobs, Opportunity, and Business Success (JOBS) Act." HB 1023 passed both the Georgia House and Senate with bipartisan majorities.
HB 1023 contains several important reforms that would reduce tax rates to help create jobs and spur economic growth. A 50 percent reduction in the capital gains tax will not only deliver much-needed relief to small businesses and investors, it will also likely deliver more money to the State Treasury. This is not idle speculation. The last five reductions in the federal capital gains tax all increased the federal government's revenue. Furthermore, Georgia's neighbors, Florida and Tennessee, do not impose a capital gains tax at all, which currently makes them more appealing to investors. By reducing the capital gains tax, Georgia will be a more attractive option for investment and job creation.
The JOBS Act will also eliminate the net worth tax, which will help foster a more competitive environment for Georgia's businesses. Last year, Georgia businesses paid $31 million on top of the state's corporate income tax, contributing to a slow migration of economic activity (and with it jobs and revenues) to neighboring states. Elimination of the net worth tax would allow businesses to invest that money into their operations and stimulate Georgia's economy. When combined with the bill's tax credits to certain businesses hiring new workers, this represents a sensible approach to helping get the private sector back on its feet.
Georgians are counting on their elected officials to remove obstacles to recovery, and high taxes are among the most daunting of them. For this reason, our members hope you will work to implement the JOBS Act with all deliberate speed.