Poll Position: Lower sales taxes on Georgia-made products?

Today we’ll continue our series of ballot questions for next month’s primary and look at a query that will face Democratic primary voters. As reported by Peach Pundit, the fourth question on Democratic ballots will be:

Should Georgia reduce sales taxes on Made in Georgia products so as to support the growth of small businesses in our state?

From a political standpoint, this is a fascinating concept for a party doomed to be a  legislative minority until at least the next redistricting in 10 years: Democrats aren’t often associated with tax cuts; this runs counter to Georgia Republicans’ stated goal of flattening and simplifying the tax code (although it fits perfectly with what they’ve actually done); and it carries a whiff of populism and whatever the state version of nationalism is.

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But the politics of the question is secondary for now, given that only Democrats will be voting on it. Is it a good idea?

On the one hand, state government offers all sorts of tax breaks to boost economic development and job creation. Why not a sales-tax break? And with local sales taxes seeming to rise constantly (see the impending T-SPLOST vote), some kind of break on the state side of the tax might be very attractive to consumers.

Then again, the issue is probably more complicated than the question lets on. Talk to anyone in manufacturing who has to deal with “made in” requirements (usually from international trade agreements, such as NAFTA), and they’ll tell you it’s tricky. How much of the materials in the product would have to come from Georgia to qualify, or would it only matter where it was assembled? What if different components are assembled in different states (or countries)?

The reference to “small businesses” is interesting as well. You don’t need me to tell you that politicians of all stripes genuflect to the revered American Small Business, and policies that favor them seem to be popular. But would a potential law actually be written to exclude, say, Kia cars built in West Point and Mohawk rugs woven in Dalton?

There are other points on each side as well, but I want to turn it over to y’all now. Should Georgia reduce sales taxes on Made in Georgia products so as to support the growth of small businesses in our state? That’s this week’s Poll Position question. Answer in the nearby poll and the comments thread below.

– By Kyle Wingfield