Georgia House of Representatives Dictator -- Speaker -- Glenn Richardson managed to get his latest version of the tax swap passed on Wednesday. His minions in a House subcommittee approved his plan to substitute eliminate school and car property taxes by substituting extra taxes on sales and service. The bill will move to the House Ways and Means Committee and if approved there will head to the full House for a vote.
Using sales taxes and taxes on services is short-sighted when it comes to funding our public education -- if not the most important, certainly among the most important responsibilities of our government.
Depending on sales taxes for funding crucial services such as education is essentially gambling with our children's future. What happens when people can't afford to buy goods and services and sales taxes decline, like they did in January? Let's hope enough House members see the folly of Glenn's Tax and give it a thumb's down.
As an aside, the whim of the market and times of declining sales offers another good argument against the so-called Fair Tax. An income tax based on a flat rate but bracketed progressively for various income levels would provide tax code simplification and a fairer system than what we have now.
But back to the Georgia property tax substitution. If the House does approve Richardson's flawed plan, we can hope that Lt. Gov. Casey Cagle and the Senate will show better judgment and shoot it down.
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ugh
Another poor move from Richardson, why am I not surprised...unfortunately, I don't have much that it'll get shot down outright.
As long as we are discussing
As long as we are discussing property tax... I must say I was very disappointed with the ABH editorial on the property tax freeze. This is a horrible idea that will be very bad for Athens and Georgia.
First if takes away a tremendous amount of power from our local government. If they cannot decide what taxes to levy, they cannot really have control over what services they provides. Cuts will be eminent. I realize the folks in the state house want less government (or at least that is their rhetoric), but they aren't doing anything to reduce state government.
Second, it will make property tax very very inequitable. I could pay $1000 a year for my property tax while my neighbor pays $500 for the same sized home... the only reason we'd have a difference is because he'd lived there longer. How does that make any sense?
Third, they say this is supposed to stop backdoor property tax increases. But really it is just going to make the front door even wider open. Local governments would have to raise millage rates if they wanted to maintain any sort of consistency in services. This would make the burden on new homeowners even greater. Do we really want to discourage people from moving into our community and state?
And finally... since when is property tax a bigger burden than state income tax? I know I pay more to the State of GA every year than I do to Athens...yet I get far more in return from ACC... yet the ABH seems to think this is a good idea?
Come on people think a little... and that doesn't mean just think about your own tax bill, think about our community and our state.
Backdoor taxes
Good points. I'm not so keen on the freeze either. Regarding the "backdoor tax" I think proponents of the freeze believe that it will force governments to cut expenses and reduce the budget or raise the millsge rate, which forces the tax increase more into the public eye. Increased property values are considered a way to raise taxes without upping the millage rate. It's funny that many people resent property taxes increasing land values because it means they have to pay higher taxes, but as soon as they want to sell it, they love that increased value. We do need some relief for lower income home owners who are being hit by dramatic increases due to gentrification in their neighborhoods and for older citizens on fixed incomes.
Definitely... There are very
Definitely...
There are very easy ways to get relief to those that need it without screwing up the whole system. Old folks already get some relief, though I'd be hesitant to say we should give all of the old folks more because some of them are loaded and quite able to pay up.