Soapbox: Perdue should veto tax-cut bills
Two tax-cut bills on governor’s desk benefit the wealthy and impact the poor, policy analyst say
In the final days of a legislative session marked by deep cuts to Georgia’s budget, state lawmakers found the opportunity to pass tax cuts that would benefit select residents — and eliminate a tax credit that offers relief to the poorest of Georgians. Sarah Beth Gehl of the Georgia Budget and Policy Institute says Gov. Sonny Perdue still has time to stop legislation that will only add to the state’s budget mess.
The Georgia House of Representatives and Senate took some positive steps to address the $5 billion budget deficit, such as passing bills to raise almost $375 million in new revenues and to improve tax collections and transparency. The General Assembly also created a 2010 Tax Reform Council to examine Georgia’s tax structure and recommend improvements.
However, despite record revenue declines, the General Assembly once again passed long-term tax cuts ($624 million a year when fully implemented), disregarded other revenue options, and shifted the cost of government services onto middle class and low-income Georgians.
Governor Perdue has been a good fiscal manager, and we hope he will exercise similar prudence this year as he reviews tax legislation. The governor has until June 8th to sign or veto these bills that could enact permanent revenue drains on future budgets.