Dear Legislator:
The global recession has hit Georgia as hard as any state, and with the prospect of a $1 billion deficit, it is tempting for lawmakers to propose “revenue enhancements” to balance the budget. But it is important to note that no matter the euphemism, attempts currently under discussion to raise revenue for the government will come at the expense of taxpayers already struggling to make ends meet. On behalf of the National Taxpayers Union’s (NTU’s) nearly 8,300 Georgia members, I urge you to reject any tax hikes, fee increases, or other revenue-raising actions and continue your good work of cutting inefficient and unnecessary spending.
Purported fiscal conservatives in many state legislatures across the country have attempted to do an end run around taxpayers throughout this recession, lambasting “broad-based” tax increases while quietly raising fees and targeted excise taxes. These counterproductive “solutions” merely compound the problem decades of spending growth created, while also raising the day-to-day costs of working families.
Proposals in Georgia range from the specific, such as Gov. Perdue’s hospital tax and a $1 per pack cigarette tax hike, to the nebulous, such as fee increases imposed by state agencies on everything from parks to sales tax administration. Following a pattern we have seen in other states, it seems that some lawmakers wish to appear fiscally responsible by supporting fee hikes while claiming they are not boosting tax burdens on their citizens. Our members know the truth – a fee increase is a tax increase by another name.
Boosting the burden on taxpayers now will only prolong Georgia’s recession. Many of the proposals being floated may actually decrease state revenues. To cite just one example of this effect, the District of Columbia government this week announced that cigarette tax revenues are $7.6 million less than they were before last year’s 50 cent-per-pack tax increase.
Even when linguistically disguised, tax increases are not the path to economic recovery. Spending restraint, budget transparency, and a pro-growth tax climate are. NTU urges you to ignore this exercise in wordplay and reject any tax or fee increase in 2010.
