Gov. Sonny Perdue’s veto of a capital gains tax cut passed by the Legislature has officially become an issue in the 2010 Republican race for governor this evening.
Earlier today, Secretary of State Karen Handel declared herself “disappointed” in the governor’s decision, and said she would have signed H.B. 481.
Yet she also said she understood the governor’s hesitation. ”I do share some of his concerns about the timing and lack of immediate relief it will offer,” Handel said.
But state Insurance Commissioner John Oxendine said late this evening tha he had no such concerns — and urged an override of the governor’s’ veto by the Legislature when it re-convenes in January.
“Cutting capital gains taxes would have encouraged more investment into the state. It is a sad day when this type of legislation gets vetoed by a Republican governor,” Oxendine said in a press release issued about an hour ago.
According to my AJC colleague Aaron Gould Sheinin, Sen. Eric Johnson (R-Savannah) — who voted for the measure in the Senate — as a gubernatorial hopeful, declined to second-guess the governor.
“I don’t care for Monday morning quarterbacks and don’t want to be one now,” he said.
In his explanation for the veto, Perdue said the state could not afford the $340 million a year in revenue the legislation would cost. “’We cannot deficit spend as the federal government does, even if those deficits generate economic growth in the long term,” the governor declared.
Don’t think an override to be automatic. Senate Majority Leader Chip Rogers (R-Woodstock), an enthusiastic supporter of the now-dead H.B. 481, put out this statement at day’s end:
“There has been no discussion of overriding any veto. It is always my preference to work with the Governor not against him. I have discussed the issue of HB 481 with Governor Perdue and while we may have some disagreements on tax policy we have far more in common. I am confident we can produce legislation next session that will be signed into law.”
That said, look for this to be a highlighted issue when the state GOP convention begins on Friday in Savannah.
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