The Honorable Sonny Perdue
Office of the Governor
203 State Capitol
Atlanta, GA 30334
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.
As you know, the State of Georgia is facing a $1.1 billion budget deficit and has endured nearly two years of high unemployment rates. Georgia's families and small businesses are struggling under these conditions, and they are looking to their state government to help to ease their tax burdens and clear the path to economic revitalization. You have a unique opportunity to provide real tax relief to Georgians by signing the JOBS Act.
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.
Sincerely,
John Stephenson
State Government Affairs Manager