Panel likely to recommend charging sales tax on more goods and services

The head of the commission studying the state tax system said this morning the panel will likely recommend expanding the sales tax base and lowering tax rates.

While A.D. Frazier didn’t provide specifics, the commission is expected to  recommend charging the state’s 4 percent sales tax on more goods and services – maybe even groceries – while lowering income tax rates.

Frazier’s comments mesh with the thinking of Republican leaders, who have long sought to lower income taxes and make up for the lost revenue by charging the sales tax on more services like oil changes and hair cuts. In addition, some lawmakers have pushed the state to put the sales tax back on all groceries. The state’s sales tax was taken off on most groceries in the late 1990s.

Frazier said the panel will also probably call for an elimination of sales taxes on energy used in manufacturing, such as carpet and paper-product production.

Frazier’s panel will make its recommendations to legislative leaders in January, and then lawmakers will develop and vote on a proposal to change the tax system.

41 comments Add your comment

double

December 14th, 2010
11:53 am

Raise taxes and fees -Oaky woods must be bought or the whole state goes to H***This is a bad time for all taxpayers especially the limited income.Remember come election time.

catlady

December 14th, 2010
11:57 am

Why wait until election time? Let’s throw the bums out NOW,before they can do more damage! Can we impeach Deal BEFORE he takes office?

Steve From Dalton

December 14th, 2010
12:09 pm

The head of the commission studying the state tax system is giving his findings. what does this have to do with impeaching Deal? The Gov. elect has not had anything to do with the study.Nothing in this report states what he will do with the plan once it is given to him.

Oh Intown Writer...

December 14th, 2010
12:41 pm

Taxing groceries is regressive and hits the poor disproportionately.
Which is why it went away, and should stay away. Nothing very Christian in increased taxation on the poor and the struggling.
Deal is in the mix – saying he’s going to grant tax cuts to businesses… whilst discussing axing education items. What economic group just said cutting business taxes isn’t really going to do anything positive for attracting new companies?

td

December 14th, 2010
1:58 pm

Oh Intown Writer…

December 14th, 2010
12:41 pm
Taxing groceries is regressive and hits the poor disproportionately

Everyone needs to pay taxes. Right now the bottom 47% pay no income taxes at all. When everyone has some skin in the game then maybe we can take a look at what the government should and should not be doing.

rural education

December 14th, 2010
2:09 pm

td: Right now the bottom 47% pay no income taxes at all. Do you follow the Limbaugh script and just say this over and over again? I have no doubt you also believe in “trickle down”

td

December 14th, 2010
2:44 pm

rural education

December 14th, 2010
2:09 pm

Read it for yourself if you do not believe me. Will you come back and say I was right after you read?

http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0&.v=1

td

December 14th, 2010
2:49 pm

Since you libs think the conservatives do not know what we are talking about then ow about the below information: Deny the facts.

Tax Year 2008
Percentiles Ranked by AGI
AGI Threshold on Percentiles
Percentage of Federal Personal Income Tax Paid

Top 1%
$380,354
38.02

Top 5%
$159,619
58.72

Top 10%
$113,799
69.94

Top 25%
$67,280
86.34

Top 50%
$33,048
97.30

Bottom 50%
<$33,048
2.7

Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service

FMX

December 14th, 2010
2:50 pm

I am confused. Raising taxes here and eliminating taxes there will only get you back where you started. Do these guys know what a circle is? Everyone should pay taxes and I mean everyone!! I think that corporations and rich folk really going to like the “new” tax system her in Georgia.

td

December 14th, 2010
2:59 pm

FMX

December 14th, 2010
2:50 pm

Corporations do not pay taxes now!!!! If they are taxed then they just pass the tax along to the consumer buying the product. This makes the service or the product increase in price and therefore we are paying the hidden tax. The benefit of them not paying taxes means that they could charge less for their product, which in turn would create a bigger demand for the product and would make the corporation have to hire more workers to keep up with the higher demand. These newly hired workers (who are currently receiving either unemployment or welfare) would then be able to get off the social programs and start paying taxes. The result would be that the state would be able to collect more tax dollars, pay out less benefits and be able to spend the money on such things as education or infrastructure improvements.

This is basic economics 101. I can not belief we have so many libs on this board that do not understand these simple principles.

FMX

December 14th, 2010
3:24 pm

TD I am no liberal. As i stated everyone should pay their fair of taxes. Poor-middle-Rich. I am a republican but I am not brainwashed into thinking that all that they do is right.
The Bush Tax Cuts have been a whammy on America’s economy. Poor people who saved a little on their taxes went down to Wally Land and spent it on Chinese imports. Rich people who saved a ton on their taxes invested the money in Pacific Rim countries. Never created a job in America but did create jobs in Asia and China.

td

December 14th, 2010
3:48 pm

FMX

December 14th, 2010
3:24 pm

I do not think I know a Republican that has ever expressed that point of view. What wing of the party do you belong too? I am not a Republican. I am a conservative with libertarian leanings.

Thomas

December 14th, 2010
5:08 pm

The Carpet and Paper industry in Georgia must be the biggest contributors to those who were elected and will create the laws. The Georgia Power Company name means to lawmakers that money buys you the highest rate increase in history. Thanks Georgia Legislature for selling out to big business!

FMX

December 14th, 2010
5:29 pm

I am a common sense republican. I use plain old common sense and not useless, grandstanding, rhetoric. Make no mistake about it TD, I do respect your opinion and you seem to understand what you are talking about. I am semi-conservative but I refuse to lock myself down into a certain way of thinking.

Curious

December 14th, 2010
5:52 pm

TD

Just a few points/questions for clarification:

Can you please re-explain the economic principle that would motivate corporations to lower prices if they were not taxed (that potentially conflicts with the principle of maximizing shareholder value)?

Hire more workers to meet increased demand…hmm…would these be domestic manufacturing (middle class) workers or (lower wage) service/retail staff?

What do you consider to be an acceptible number of jobs held to maintain a basic quality of life?

Just curious…Thx.

Gov. James Jackson

December 14th, 2010
6:47 pm

FMX@2:50p.m.: “Do these guys know what a circle is? ”

Yes, they do. They use it for circular firing squads and circle-j**ks.

Ben Taylor

December 14th, 2010
9:04 pm

Yes, this is a FANTASTIC idea! Let’s try to be more like Alabama…a perpetually broke state which relies almost exclusively on sales taxes. Excellent! If we think things are bad now, wait until we go through a recession with sales taxes floating public business. I swear, I thought this half-baked idea was locked away with Glenn Richardson, oh well…I guess we can use the crazy guy’s ideas.

WAW

December 14th, 2010
9:31 pm

Well it didn’t take long at all… you Republican Voters can be happy… yo mama and daddy is about to loose 7% of their income to pay taxes so your rich (R) after their name can suck-up to their owners… keep voting Republican… Before you smart back at an old man; people on pensions spend their income and most pay very little Income Tax…

I See

December 14th, 2010
9:48 pm

I see people arguing about the state of Georgia’s tax plans using federal data. What are the numbers for Georgia? I see the mixed arguments and it is apples and oranges. Our income tax is flat rate so I bet the numbers are significantly different.

Intown

December 14th, 2010
10:25 pm

so much for our very progressive income tax. the beginning of the end for our middle class. Anyone want some bananas to go with their republic?

David

December 15th, 2010
5:34 am

The scum is going take our money one way or the other……..I bet they give themselves raises before too long!

pete

December 15th, 2010
8:11 am

wonder how many old folks will be living w/ their kids?

pete

December 15th, 2010
8:19 am

I guess all us dumb but workers will just not consume anything.Let corporations consume their own product.Dont buy the junk they want to force feed u.

Road Scholar

December 15th, 2010
8:59 am

td: ” Right now the bottom 47% pay no income taxes at all. ”

According to your/the chart those that make less than $33,000 pay 2.7% of the taxes collected. 2.7% does not equal zero!

I also question the AGI of the top 1%. These people make more than $1 M per year and have an adjusted income of $380K. Maybe we should just do away with deductions!

Also have you tried to live in today’s world on $33K /yr?

Real Athens

December 15th, 2010
9:51 am

TD is “curiously” silent.

His economics entail that if you lower the tax burden on corporations that Prices for products manufactured by that corporation will fall.

Name one example

Observer

December 15th, 2010
9:56 am

Librals certainly are whiners and poor losers aren’t they?

The Snark

December 15th, 2010
10:21 am

It’s foolish to rely on consumption taxes to fund government. In time of recession, government revenues plummet just as the services it provides are most needed.

But it does have two advantages: (1) it’s great if you’re rich, and (2) it’s great if you think government is evil and should be starved and shriveled into nothingness. And if you’re a fan of (2), may I suggest a visit to southern Mexico or the Sudan?

Real Athens

December 15th, 2010
10:23 am

Observer …. Especially those librals(sic) on Fox News and AM radio. That angry fat man on the radio complains all the time. That pinhead, lawyer from Atlanta screams at everybody. Fox News spent the last two years complainin’ ’bout everything. Yep, them whiny, librals(sic).

Base

December 15th, 2010
10:50 am

The GOP legislature plays the tax shell game that only the business lobby can win.

pete

December 15th, 2010
11:25 am

stay in bed w/ corporations , soon u will be working for plug nickels.Thats how other countries do it, thats why they took their companies elsewhere cheap labor.They will not make any new industry in this country people will not work for pennies.This is why we have no jobs.

khc

December 15th, 2010
11:30 am

td why no outcry on the oakey woods or did i miss it……and can you explain why the wealth disparity is growing so rapidly and what are the consequences? i agree everyone should have some skin in the game but when the guys at the top give themselves big raises for holding down the average joe so they can be competitive globally, something seems amiss. doubt that foreign companies pay their execs as lavishly as ours. if everyone needs some skin in the game, then everyone should make decent wages/benefits. any monkey at the top can say hold wages, scare the sheep at thought of losing job, why getting big bonuses and golden parachutes. do you really think those folks in washington (lobbyists) and wall st (blanktards) are deserving of their compensation?

Corey

December 15th, 2010
11:37 am

Cut corporate taxes by one-third and nickle and dime everyone else. Makes sense to me. When will we Georgians stop voting against our own best interest? I know some of you will immediately pounce on me with the cut taxes on businesses and create jobs mantra. Haven’t any of you noticed that we have been doing that over and over while the hole grows deeper and public works is crumbling and educational quality is hanging on by a thread.

Us vs Us

December 15th, 2010
12:36 pm

It’s called cost-shifting plain and simple.

Ga GOP – “We cut taxes before we raised them.”

pete

December 15th, 2010
2:05 pm

I say instead of taxing food, lets tax all football games extra 2.00 dollars per game.I beleive thats a better cost shifting plain, since most poor people do not go to games because its not in their budget,but most rich people can afford!

td

December 15th, 2010
4:02 pm

Real Athens

December 15th, 2010
9:51 am
TD is “curiously” silent.

His economics entail that if you lower the tax burden on corporations that Prices for products manufactured by that corporation will fall.

Name one example

Where do you think the money comes from now for corporations to pay taxes? Do they hold down their profits to pay the taxes? Do they cut salaries to pay for the taxes?(I guess this has to be no since you all are saying they get their raises and bonuses, although they could be cutting the wages of lesser employees to pay the taxes) Maybe, they pass those tax expenditures along to the consumers that buy their products?

All you libs are doing by demanding higher corporate taxes is taxing yourselves and all the consumers indirectly buy paying higher cost for these goods and services. The poor even have to pay these extra (embedded taxes) so I guess you all are responsible for these regressive taxes?

To answer you question about name a corporation. Let us take the tobacco industry. You libs (in the name of the public good) have taxed the heck out of tobacco products at the federal and state levels. What has been accomplished? Are the corporations profit margins decreasing? No. Is the consumer paying these increased taxes? Yes, and have we dramatically decreased the use of tobacco products in this country or have we just put a regressive tax on the poor (majority of users)?

td

December 15th, 2010
4:10 pm

khc

December 15th, 2010
11:30 am

First, I agree that the price paid by the state for Oakey Woods is outrageous and it will take some time for the Tea Party folks get rid of all of these corrupt people out of the party but at least they are working on it. Why are there not more libs joining this cause instead of just whinning about it.

Second point for you to consider. Oakey Woods is a drop in the bucket compared to all the money we waste every year in fraud committed in the Welfare department, Medicaid, Medicare and other social programs. Where is the outrage for this waste of money from you libs?

The Oddball

December 15th, 2010
4:17 pm

@ td: Tobacco use in the USA has decreased every year since 1998.

khc

December 15th, 2010
5:15 pm

td, i agree but you need more auditors to go after these folks……you just can’t declare it, you need staff to get these folks. the public sector could provide the tools but i think you need state staff to lower the boom on them.

you did not address income inequality and ability to pay income taxes

Michael

December 16th, 2010
8:18 am

If they tax legal services then I’m moving. It’s hard enough getting a fee without having to add a tax to it.

td

December 16th, 2010
1:25 pm

The Oddball

December 15th, 2010
4:17 pm
@ td: Tobacco use in the USA has decreased every year since 1998.

Has it reduced for the group it was intended for (young people)?

Us vs Us

December 17th, 2010
9:08 am

Let’s try this again as someone at the AJC seems bent on censoring my posts ….

@td regarding, “I agree that the price paid by the state for Oakey Woods is outrageous and it will take some time for the Tea Party folks get rid of all of these corrupt people out of the party but at least they are working on it.”

You can’t just make things up td. The folks in power now and soon to be were chosen by the GOTP. There’s nowhere to run now and you folks have been and will be holding the bag. Keep that in mind as we watch Deal keep up Purdue’s good work with the blessing of GOTP folks just like you.