Your morning jolt: Sales tax on groceries, Girl Scout cookies abandoned in Tax Reform 2.0

At 2 p.m. today, House Republicans are set to unveil a revised attempt at tax reform that drops two of its most controversial provisions – a return to the state sales tax on groceries and on goods sold by non-profits.

In other words, Girl Scout cookies and Boy Scout popcorn would remain tax free. As would a can of pork and beans.

Details are yet scarce, but here are the changes we hear are in the works for a bill engineered to build a majority for House passage:

– A new sales tax on the casual sale of automobiles and boats would remain;

– A sales tax on car repairs stays in;

– The sales tax on satellite TV and other communication devices, such as cell phone, also survives;

– Any thought of a sales tax on legal services has been abandoned;

– An energy sales tax disappears, but would remain on coal – an important point to Georgia Power;

– The state’s personal income tax would drop from 6 percent to somewhere in the 4 percent range.

– The corporate income tax remains the same.

– And in a bid to lure Democratic votes, the bill includes a low-income tax credit.

Certainly more details will come throughout the morning, so stay in touch.

***
Today’s Politifact takes on Ann Coulter’s contention that a little radiation can be good for you.

- By Jim Galloway, Political Insider

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83 comments Add your comment

Tom

March 24th, 2011
10:12 am

No surprise.

Bill

March 24th, 2011
10:15 am

Is this a tax increase or what? Again it appears that the powerful can get exemptions, but the rest of us not. Attorneys, non-profits, etc., but not poor taxpayers who buy used cars. What is the fiscal impact??

Stop the madness!

March 24th, 2011
10:29 am

A tax increase for 95% of us along with a new burden placed on thousands of small businesses. Sounds like a great plan for 5% of the population. This is a very bad idea and needs to be shelved.

Scott

March 24th, 2011
10:31 am

Does this mean there will be less state income tax taken out on my check?

deezcoons

March 24th, 2011
10:32 am

govt won’t be happy until we are all slaves to them

khc

March 24th, 2011
10:35 am

let’s tax middle america more…..what a sham

khc

March 24th, 2011
10:38 am

tax services like car repair but not lawyers…good grief charlie brown…

shows how easy the hypocritical repubs are….after all they complain about trial lawyers etc.

Shelby

March 24th, 2011
10:39 am

People wake up and pay attention! The current administration (your local government) is increasing the tax on the common man and while giving tax breaks to the wealthy and big corporations. Oh, please do not be fooled by “the bill includes a low-income tax credit” or a drop from 6% to 4% on personal state taxes. Tax breaks for the wealthy do NOT create JOBS! Unemployment in Georgia is over 10%!

Tommy

March 24th, 2011
10:42 am

The Federal and State Governments are forcing the public into a cah and barter society.

Sounds like a Wimpy Move

March 24th, 2011
10:43 am

Remember Georgia! You asked for low taxes from republicans and this is what you get. The items listed will not be the last tax increase you will see. Only Democrats are into wealth redistribution! Yeah, right!

mb

March 24th, 2011
10:43 am

The last time a tax on personal sale of used automobiles was attempted in GA it was a total CF. What makes them think this time around will be any different?

Darby

March 24th, 2011
10:45 am

@Scott March 24th, 2011 10:31 am

No. They want to keep the income taxes and add all these new taxes and ‘user fees’ and other things. No revenue collector in GA has ever said “You know, we have collected enough. Let’s remove this tax or fee!” Nope. Never.

Nobody seems to want to cut anything tax money gets spent upon, nor look at efficiencies of where the money is going and how it is used. They wouldn’t need so much revenue if they had better ways to spend it. But see above: nobody ever says no to more money.

And now there’s a low income tax credit? If that’s like the Federal low income tax credit, then it will be like paying people money to rebate taxes they never paid anyway. Somebody else pays, though. Someone always does.

woodie

March 24th, 2011
10:46 am

More taxes for the poor and middle class. Why does this not surprise me. And a can of beans is taxed. It’s called sales tax. And this car ’sales’ tax has a name too. It’s called ad valorem. But it’s ad valorem only for individuals who aren’t businesses. And what’s this cell phone tax? Sales tax and communications fees and regulatory fees aren’t enough? How about a nice huge gas tax to go with this? Why let the oil companies get all the money? Tax the oil companies for excessive profits.

All Wrong

March 24th, 2011
10:46 am

Tax Reform??? – how about reducing what the taxes pay for in lieu of more taxes on those who produce the most. . . and low-income tax credits, why is it that those with low incomes get so many tax breaks, don’t they use all of the same services as others who pay a great deal in taxes? Food should be taxed, maybe not at current sales tax levels, but at least 2-4% – a reasonable, fair tax.

Taxing car sales between individuals, give me a break, what’s next taxing the kids when they sell their baseball cards to the kid next door . . .

Politcal games continue . . .

Bill

March 24th, 2011
10:48 am

Once again, it’s all because of the blacks.

whatthe?

March 24th, 2011
10:49 am

I already pay a tax on my Directv service so what is this BS about satellite subscribers don’t pay taxes? My cell phone bill is also full of taxes!

arnold

March 24th, 2011
10:52 am

Taxes? Remember, this is a red state. The majority of voters put these wonderful politicians in office. Keep voting against your self interest. Ringling was right, except there are more than one born every day.

All Wrong

March 24th, 2011
10:54 am

@Shelby, could you show us you economic knowledge by explaining how jobs ARE created???

Your statement could not be further from the real truth, but then again you may be one of the sheep that want the government to provide you with a job and everything else you need or want at the expense of the taxpayer . . . .

Cutty

March 24th, 2011
10:55 am

Where’s the Tea Party at?!?! I thought they hated both parties equally *snarky arse grin on my face*.

Just Wait

March 24th, 2011
10:56 am

The people voted the Republicans to power thinking they would make things better. Well, it is certainly better for the wealthy, who the Republicans cater to. All the while, the middle class does without more and more. Some day, the middle will revolt and it will not be the Tea Partiers, Moral Majority, etc. It will be the ones who have had to pay for all the tax breaks given to the rich and poor. I hope to live that long.

All Wrong

March 24th, 2011
10:56 am

@Darby . . amen . . .

jojo

March 24th, 2011
10:59 am

We are being taxes to death in this State. I hope these A holes have a good time, there with be elections in the future. We can send them home the same way we brought them to town. Enought of this crap.

Gerald

March 24th, 2011
10:59 am

What do you expect from a group of Attorneys, its not about the people of this state, it about the Attorneys.

Storm 8

March 24th, 2011
10:59 am

That’s was you Georgians get! You keep voting in these Repuliclowns and all they do is screw over the working man and pad the pockects of the wealthy and powerful. They do it over and over again and you keep voting for them….They are not for you!

Self_Made

March 24th, 2011
11:01 am

All this shell game and NOTHING on increasing the excise tax on tobacco, the only no brainer in this group of proposals.

rexdogma

March 24th, 2011
11:01 am

to the fair taxers. nothing fair about this. just a continued break for the corporations who are doing nothing for jobs here and the upper 5% and probably the politicians. good luck!

ga female

March 24th, 2011
11:02 am

You are the fools that push the R button. I see the stupid women in the polls that have to have their little cheat cheat that their Bubba husband prepares for them that tells them how to vote. How stupid. Never would some husband tell me how to vote. So lady when you get pregnant by your personal trainer, you will have to wait 24 hours to get an abortion.

mcsleezy

March 24th, 2011
11:03 am

How often are you people buying used cars and boats and repairing them? A 7% increase in taxes to satellite and cell phones is hardly going to eat into the 2% less in income taxes I will pay. Maybe you people need to dump HBO and the smart phones. Really this is kind of a step towards fair tax. Rather than taxing more of your income your being taxed more for consumption. Illegal immigrants that don’t pay income taxes probably have cell phones and watch some sort of tv, just saying.

whatthe?

March 24th, 2011
11:06 am

@Mcsleezy

Directv just raised rates after the 1st of the year & now I will pay ANOTHER tax on the bill because someone with the state thinks we don’t pay taxes on satellite?!

Everybody needs to get their grubby little hands out of my bank account!

Jack

March 24th, 2011
11:06 am

we need to wake up and and see this will never cease ( efforts to increase revenue at the state lrvel at the expense of the poor) for example check out the new fee schedule for every conceivable issue in a courthouse, the fee schedule for every type of service provided by the local and state government has more than doubled in some cases. see what feeyou now will pay for a copy from the clerck of court !! lol

[...] poor, the Republicans today are set to unveil a new tax plan that considerably sweetens the deal. According to Jim Galloway at AJC, some of the changes [...]

Trey

March 24th, 2011
11:08 am

The legal services tax is a tax on the fee for services rendered. That means I hire a lawyer, she charges me $2000, there is no sales tax on the $2000. Doesn’t help or hurt lawyers. Saves me the tax on the $2000.

The tax on the sale of used cars is sneaky though. Definitely creeping up on the little guy…

jd

March 24th, 2011
11:08 am

I dare you to ask who has read the bill? and even further, how much time there will be to read the final version of the bill as it is sure to be voted on late on Day 40. So much for transparency.

td

March 24th, 2011
11:09 am

Gerald

March 24th, 2011
10:59 am
What do you expect from a group of Attorneys, its not about the people of this state, it about the Attorneys.

I agree. Attorneys should have any income won in a civil dispute taxed at 50% and all other income they earn at 40%.

the troof

March 24th, 2011
11:09 am

All of you are mislead… remove ALL sales tax…ALL supplemental tax…ALL credits…ALL incentives…and tax EVERYONE 15% of their income. It’s really that simple.

Now what to do with the money? Well… let’s cut the fat out of our government…and increase all government salaries for those remaining funds. Another simple concept…if you pay higher wages for government jobs (ie: Teachers, Law Enforcement, the President)…competition through attrition will build our government to have more qualified individuals to run it. With more qualified (ie: smarter) individuals…our tax initiatives could be better managed.

Think about it… our brightest want to be entrepreneurs, CEOs, and make the big bucks. None of these people want to work for the government… and who can blame them.

rexdogma

March 24th, 2011
11:09 am

what’s next tax on yard sale items? Hear that Mr. Speaker

LMAO

March 24th, 2011
11:10 am

I wonder how @td and @Last Man Standing will defend their Republican tax increase. Although your state tax will decrease so will your personal exemptions meaning “we giveth with one hand and taketh away with the other”. Same tax rate. LMAO this is what ya’ll wanted.

redstatestupidity

March 24th, 2011
11:10 am

You got you asked for by voting Republican. More taxes on the middle class, the cushy status quo for the wealthy. Republicans are shameless advocates for those who don’t need the help. Beat something other than the bible and maybe you could see this!

jake

March 24th, 2011
11:12 am

come on people, why should we raise taxes on anything? When I have had money problems I did’nt ask for more money, I cut my spending. How long are we willing to let these politicians do this crap to us?

td

March 24th, 2011
11:12 am

Self_Made

March 24th, 2011
11:01 am
All this shell game and NOTHING on increasing the excise tax on tobacco, the only no brainer in this group of proposals.

Will not make enough money for the state. Now if they want to tax alcohol more then the revenues would flow boundlessly.

M

March 24th, 2011
11:13 am

Storm 8

It would be a humdred times worse with the dimwits.
That’s all they know to do is raise taxes.

Sink

March 24th, 2011
11:16 am

@Bill… Please clarify your statement. Poor people have no skin color.

td

March 24th, 2011
11:19 am

LMAO

March 24th, 2011
11:10 am
I wonder how @td and @Last Man Standing will defend their Republican tax increase. Although your state tax will decrease so will your personal exemptions meaning “we giveth with one hand and taketh away with the other”. Same tax rate. LMAO this is what ya’ll wanted.

I will defend it by saying that 2% less taxes on the producers while at the same time picking up money not only from the non producers but also the illegals, people working under the table and the drug dealers.

It is not a hard decision. This gets us closer to having a fair tax and doing away with income taxes. If you do not want to pay then do not user the service. Gives you a choice.

Oh and BTW: Corporations do not pay TAXES. They just build that cost into the product or service and YOU pay them. Take all taxes off of corporations, cut regulations and you will see jobs flock back to this country in droves.

td

March 24th, 2011
11:22 am

redstatestupidity

March 24th, 2011
11:10 am
You got you asked for by voting Republican. More taxes on the middle class, the cushy status quo for the wealthy. Republicans are shameless advocates for those who don’t need the help. Beat something other than the bible and maybe you could see this!

How is cutting the state taxes on ALL working people a “cushy status quo for the wealthy”? How is collecting money in user fees and taxing resales from drug dealers, illegals and people working under the table and not currently paying any taxes not fair?

Sonny Perdont

March 24th, 2011
11:24 am

This is a godawful shame. Grocery tax would be more evenly applied to everyone state wide and much less of a sticker shock compared to auto sales & repairs. Nice to see auto dealership lobbyists impacting the Georgia legislature at the expense of common sense.

mcsleezy

March 24th, 2011
11:25 am

@ whatthe?
Your right its wrong how they’re going about this with satellite, cell phone, and other services. This would be better recieved if it was just a small increase to sales taxes rather than a tax on services, but hey thats just my opnion which doesn’t matter to GA’s lawmakers, just like yours doesn’t matter to them. Whatever happens, taxes are going to increase. The state’s debt is in the toilet thanks to BOTH parties misuse of state funding. Increasing taxes on corporations wouldn’t help because they will just pass the tax liablity down to customers as an increased cost to there products and services.

yuzeyurbrane

March 24th, 2011
11:26 am

This must be a reasonable compromise because it has folks on all sides of the political spectrum screaming.

Mrs. H

March 24th, 2011
11:27 am

We already have a “low income tax credit.” It’s called the earned income credit, which is already an unfair tax benefit to people who get back more than they pay.

mcsleezy

March 24th, 2011
11:34 am

@ the troof

Sorry but I feel that I pay for illegals and the lazy enough as it is. The sales tax is all they pay because thay can’t avoid it. I’m so sick of libtards wanting to give my paycheck away so Betty Sue can sit in her trailer all day watching Jerry Springer taking her meds that I paid for. I swear they should install electric shock therapy at the polls in 2012 for anyone who votes for Obama.

Jose

March 24th, 2011
11:40 am

all they need is to tax the taxes.