THIS PROPOSAL IS REVENUE NEUTRAL. Let me tell you what this proposal WILL NOT do:
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NO TAXES ON GIRL SCOUT COOKIES or BOY SCOUT POPCORN.
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NO TAXES ON GROCERIES
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NO TAX ON YOUR DOG OR CAT WHEN YOU TAKE THEM TO THE VET.
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NO TAXES ON HAIRCUTS, LEGAL SERVICES, AAA MEMBERSHIPS, SAM’S CLUB MEMBERSHIP, DRY CLEANING, PEDICURES, PRESCRIPTIONS.
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We are not going to eliminate the exemption on Georgia’s cherished non-profit organizations.
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We are not going to eliminate the senior income tax exemption
Now that I have told you what it will not do, lets see what the JOBS BILL & TAX REFORM looks like:
The Georgia General Assembly understands that the greatest way to pull itself out of this prolonged economic crisis is to provide its citizens workforce with high paying job opportunities. These initiatives are the result of the first comprehensive analysis of Georgia’s tax code through the lens of global competition and a greater amount of technology-oriented job opportunities.
The question is, “What will make Georgia a better destination for business partners that will bring job opportunities for Georgia’s citizens?”.
Cutting personal income tax rates would be the most advantageous change Georgia could make to attract high-technology companies and high paying jobs for Georgians.
Specific to legislative action:
- Flattens the Personal Income Tax Rate.
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Lowers the personal income tax rate by 25%, from 6% to as low as 4.5% or possibly even lower
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Our neighbors to the North and South (TN & FL have no personal income tax and AL taxes personal income at 5%.
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Keeps current deductions for contributions to college savings plans
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Keeps current social security deduction
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Eliminates the sales tax on energy used by manufacturers.
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Georgia is the ONLY state in the southeast (except for NC which taxes energy at a reduced rate) and only one of only 14 states in the nation that imposes a sales tax on energy used by manufacturers.
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Manufacturers are among the largest users of electricity and natural gas. High energy cost are repeatedly cited as significant obstacles to the manufacturing sector because they are often the single largest expense in manufacturing process.
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Broadens Consumption Taxes (Modernizes tax code)
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Communications Services Tax
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Establishes an across the board 7% tax on all telecommunications including cable, satellite, and all phone services which brings uniformity to telecom service providers
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Removes the telecom tax on capital investment, allowing for increased investment on broadband and wireless capacity which could bring more telecommunications access to rural areas.
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Increased telecom capital investment will create more job opportunities in Georgia
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NC, VA, and 6 other states have already implemented similar flat communication taxes
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Casual sales to motor vehicles, boats & airplanes
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Georgia would join 44 other states that already tax casual sales
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Automobile Repair Service
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Georgia currently taxes parts on auto repairs
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At least 21 other states tax automobile labor repair including FL & TN and this proposal calls for the same in GA
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Don’t forget, SPECIFIC TO LEGISLATION.