Dear Legislator:
On behalf of the National Taxpayers Union's more than 8,200 members in Georgia, I urge you to support HB 1023, the "Jobs, Opportunity, and Business Success (JOBS) Act." The JOBS Act will help spur economic growth and provide incentives for businesses to resume hiring by eliminating Georgia's net worth tax, cutting the state's capital gains tax in half, and giving tax credits to businesses thatemploy new workers.
The State of Georgia is facing a $1.1 billion budget deficit and has endured nearly two years (23 consecutive months) of increasing unemployment rates. While many Georgians struggle with this reality, they look to their legislators to help to ease their tax burdens and begin paving the path to economic recovery. The State Legislature has a unique opportunity to do so by enacting the JOBS Act.
HB 1023 contains several important tax reforms that would help reduce the levies on Georgia's families and businesses. A 50 percent reduction in the capital gains tax will not only deliver muchneeded relief, 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 businesses hiring new workers, the JOBS Act would provide a needed stimulus without heaping more bills onto the backs of taxpayers.
The Georgia House and Senate were wise to pass a version of the JOBS Act last year, but Governor Sonny Perdue unfortunately vetoed the legislation, and it faces delay this year. Georgians cannot afford to endure politically-motivated holdups on needed tax relief. The time to act for Georgia is now. I urge you to support the common-sense tax reforms in the JOBS Act. We look forward to working with you to pass this important legislation in the remaining days of the session.
Sincerely,
John Stephenson
State Government Affairs Manager