Nothing better for our economy, citizens than tax relief

A window of opportunity for Georgia to become a world leader
March 2, 2007 -- Atlanta, GA -- State Sen. Tim Golden (D-Valdosta) There are numerous proposals coming from all sectors of the American political sector on how best our nation can compete with globalization, the loss of domestic manufacturing jobs, and the never-ending “brain drain” that sees our best talent and ingenuity head overseas.

Here is my idea.  Let’s focus on something more than simply competing with the rest of the world. Why not make Georgia the unquestioned leader of the global economy?

Want to know the best part?  It’s really very easy to accomplish. 

Tax relief.  Pure and simple. 

Time and again, statistics have shown that the American economy – and Georgia’s, in particular – prospers and grows when the tax burden placed on its businesses and citizens is lowest. Most recently, the tax cuts that occurred in the 1980s led the way to one of the most robust American economies in recorded history, that of the late ‘80s and early to mid 1990s. And the numbers have also shown that our economy and job growth stagnates when government takes too much of our hard-earned pay from us and into its coffers.

Tax relief should not be a partisan issue. Last year, Republican state Rep. Jeff Lewis was the lead sponsor for a bill that would have provided a sales tax exemption to Georgia manufacturers on the cost of natural gas, artificial gas or electricity used in producing manufactured goods. The bill was strongly supported by numerous statewide business groups, including the Georgia Chamber of Commerce, Georgia Industry Association, and other groups that are a part of the Coalition for Fair Energy Taxation.

Also last year, then-state Sen. (and now Lt. Gov.) Casey Cagle introduced a measure that would have increased the income tax exemption for Georgians age 62-64 to their first $50,000 of annual retirement income and completely exempted those 65 and older from paying any income tax, starting in 2009. The Senate adopted amendments sponsored by Sen. Doug Stoner and myself to raise the exemption to $75,000 for ages 62-69 and increased the age for a total exemption to 70, and limiting the income level at the first $100,000 for those 70 and older. This avoided removing some of Georgia’s wealthiest citizens from the income tax rolls all together.

The impending nationwide population boom among seniors is one reason the state Senate supported this legislation. According to the Washington-based Pew Research Center, over the next 18 years, approximately 72 million Americans will retire from their full-time jobs. At least 10 percent of them, or about 400,000 per year, will pull up their roots and purchase a retirement home in another state where it’s warmer – primarily in the South or West. As the Baby Boom generation reaches its golden age, more and more states are realizing the benefits of attracting and keeping a healthy, wealthy and relatively young new breed of retirees.

But tax relief isn’t just good for every segment of the population. It’s also desperately needed for businesses, in particular, the manufacturing sector. Almost every day we see headlines that a Georgia plant is closing, leaving a dependent community uncertain about its future. The closing of the General Motors and Ford plants in metro Atlanta should leave no doubt that the decline will continue until we get serious about across-the-board tax relief for this vitally important component of our state’s economy.

I salute the state’s dedication in trying to attract new industry and tourism to Georgia. But wouldn’t it also make sense to direct at least an equal amount of effort to reverse the steep decline in the number of jobs that are already here, so that we’re not constantly playing catch-up?

• State Sen. Tim Golden represents the 8th District (Brooks, Cook, Lowndes and Thomas Counties). During the legislative session, he can be reached at 121-A State Capitol, Atlanta, Ga. 30334; by phone at 404-656-7580; or by e-mail at tim.golden@senate.ga.gov.