(Alexandria, VA) – Today, the 362,000-member National Taxpayers Union (NTU), the nation's largest and oldest taxpayer advocacy organization, criticized Georgia Governor Sonny Perdue for vetoing badly needed tax relief that would have helped spur job creation and economic growth for the residents of his state. NTU has 8,300 members in Georgia.
HB 1023, which Governor Perdue nixed yesterday, would have provided a 50 percent reduction in the state's capital gains tax and eliminated the net worth tax, among other proeconomic growth provisions. HB 1023 overwhelmingly passed the Georgia House 154-8 and the Senate 33-13.
John Stephenson, NTU's State Government Affairs Manager, says, "Georgia is in need of real tax relief. After more than two years of high unemployment, Georgians have turned to their elected officials for ways to help the private sector get back on its feet, and HB 1023 was up to the job. But instead of offering Georgians a helping hand by signing this bill, Governor Perdue has turned a cold shoulder with his veto."
To those who argue that HB 1023 would devastate the state's finances, NTU's Stephenson says that cuts in the capital gains tax have actually increased revenues in the past. "The last five reductions in the federal capital gains tax all increased the federal government's revenue," notes Stephenson. "Both Florida and Tennessee do not impose a capital gains tax at all, which makes them more appealing to investors. By reducing the capital gains tax, Georgia would be a more attractive option for investment and job creation."
Stephenson also contends that repeal of the net worth tax would save Georgia small businesses $31 million, which also have to pay the state's corporate income tax. "The net worth tax contributes to the migration of businesses and economic activity to neighboring states. By eliminating the net worth tax, businesses would have an incentive to stay and invest in Georgia, which will create jobs for Georgians."
Stephenson concludes, "Georgians are counting on their state government to remove obstacles to recovery, and high taxes are among the most daunting of them. Yet, by vetoing this important legislation, Governor Perdue is maintaining those barriers to a recovery, one that could benefit hard-working families across the state."
NTU is a nonpartisan, nonprofit citizen organization founded in 1969 to work for lower taxes, smaller government, and economic freedom at all levels. Note: For more information on NTU, visit www.ntu.org or text the word "FIGHT" to 67292.