Nathan Deal: Tax reform ‘probably’ back on the table in August

On Fox 5’s “Good Day Atlanta,” Gov. Nathan Deal this morning threw out a big hint that tax reform will indeed return as a topic when state lawmakers re-assemble in August for a special session to address redistricting:

Said Deal:

”As long as we could reduce the scope of what we’re talking about, so that we don’t get into a prolonged session this summer, I would certainly entertain that idea. And I think that’s probably where we are. We got very close – the General Assembly did – to being able to finalize a package.”

The final decision will be up to the governor. In a special session, he formally decides the agenda when he summons lawmakers to Atlanta.

State Rep. David Wilkerson, D-Austell, adds this note that helps explain Deal’s willingness to add tax reform to a summer agenda:

One of the primary reasons is the increased senior exemption that is scheduled to take effect on Jan. 1, 2012. Currently the authors of the tax bill want to freeze at $35,000 the exemption for seniors to help pay for something else.

Once Jan. 1 hits, the exemption goes up to $65,000 a year. And any attempt to remove it would be “a significant tax increase,” Wilkerson said.

- By Jim Galloway, Political Insider

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53 comments Add your comment

Booger Fling

April 22nd, 2011
12:29 pm

Of course it will be on the table. We MUST somehow rewrite the tax laws to cut the rich’s tax burdon so they will give the extra income to others in the form of jobs.

Yeah right.

Karl Marx

April 22nd, 2011
12:30 pm

Good Grief, they still didn’t get the message. DON’T create new taxes. I and many more will vote you out of office. Don’t stick me with higher taxes on my car repair bills, or my cell phone bill, or my TV service then promise to reduce my Income tax at “sometime in the future” to be “Revenue Neutral” . After the GA 400 Toll LIE we don’t believe you. Republicans want “Lower Taxes and Smaller Government” HA that’s another lie too.

Billy

April 22nd, 2011
12:34 pm

Don’t raise taxes, even if you don’t lower them. Don’t listen to malcontents when if comes to tax policy. Lazy people are always jealous of other’s hard earned success. LOL, they don’t vote anyway–it takes too much effort…

gsueagle

April 22nd, 2011
12:34 pm

whatever happened to the Fair Tax ? it sounded great

Fred

April 22nd, 2011
12:38 pm

Please Nathan not again. We know you favor the rich, but this is so blatant.

Bobby

April 22nd, 2011
12:42 pm

Keep in mind Deal and his wife receive retirement checks paid for by the very taxpayers he wants to raise taxes own. He see himself above the working class of Georgia. I’m thinking maybe he is related to Leona Helmsley.

James in Athens

April 22nd, 2011
12:42 pm

Fairtax will never happen. Too many Government
Jobs would be lost… When is Gov. Deal going to
sign the immagration law?

Bobby

April 22nd, 2011
12:44 pm

Guess I’ll have to join the Tea Party and Southern Baptists to keep Deal and the legislature from raising our taxes in August just as we had to in order to prevent his robbing the working class to pay the wealthy this past session. Georgia Republicans do not appear to have ever seen a tax increase they do not like.

khc

April 22nd, 2011
12:49 pm

we’ll be watching

Social Darwinist

April 22nd, 2011
12:54 pm

Good for Gov Deal. We need until August to come with our new disguise that will appeal to rednecks(shift to consumption-based tax) so the people don’t figure out what we are really up to. If we do this right, we can get these people to protest for their own systematic extermination!

So, let me run this past you. How does this sound? “Consumption-based tax will reverse existing job-detroying policies and create certainty for the job-creators of this state because everyone knows that the more money that you give rich people, the more poor people they will hire.We all know that those with money are hard working and smart and those and deserve to live and reproduce. And, those without money are stupid and lazy and need to die off quickly “

Centrist

April 22nd, 2011
12:57 pm

Hopefully, this time they won’t hit the middle class to pay for tax reductions of higher and lower income groups.

Removing the existing phaseout of taxing pension income is a tax INCREASE. It also is counterproductive in encouraging already retired and future retirees to relocate to our neighboring states that don’t tax pension income. Losing them will hurt the GA economy since they pay property taxes, sales taxes, don’t heavily use school/road infrastructure, and have the lowest crime rate.

Applying sales tax to private car sales is a tax increase, and will increase the mark-up of dealers (which is simply a special interest payoff).

Beyond the special interest and campaign contributor payoffs, the idea of moving from an income tax to a consumption tax (which pensioners will pay) is probably a good idea. As we saw, the devil is in the details.

Halftrack

April 22nd, 2011
1:00 pm

The Tax issue needs more vetting by the public and legislators. This has not been thought out enough of the unintended consequences etc. I urge the Governor to not put this on the agenda for the Special Session. Gas prices, and QE printing of money by Washington has already eroded our buying power by 20%. We don’t need another tax hike in the disguise of reducing the current system

Puppet of the Thieves

April 22nd, 2011
1:03 pm

The power brokers sent the elected to the Gold Dome for one and only one reason . . . and they failed. You know Deal will bring it up as soon as he can. That’s what he’s paid for. What ever happened about his son in law declaring bankruptcy a year or two before the law allows? That’s a crime.

Tea Party Activist

April 22nd, 2011
1:04 pm

Corporations and top earners should not pay taxes to support lazy freeloaders who can’t even get jobs! Every knows that’s the reason the Tea Party happened in 1756 – to make government represent those who are smart and work hard and not to babysit losers!

George

April 22nd, 2011
1:11 pm

Sounds like the liberals are trying to make their move. The top 5% of earners pay more than 10% of tax revenue for the state! This is an outrage and thank goodness that Gov Deal is going to do something about this to make it fair and, as liberals say, progressive. Let the people who are successful keep their hard-earned money! They earned it! Everyone else should pay their fair share.

I can smell deal from here

April 22nd, 2011
1:12 pm

Nathan Deal is a joke – Politics in general are a joke. Rather than favoring the citizens of this state/country, he/they are only after their best interest. Business leaders need to take over so this country can prosper once again. We are becoming the butt of jokes….

Billy Bob

April 22nd, 2011
1:15 pm

The tax revisions as proposed in the package that was withdrawn would have cost me several hundred dollars immediately and possibly several thousand dollars in the future. I don’t understand how the proponents could say it was reducing everyone’s taxes. Any claim that it was to increase jobs is a bald faced lie. It was to shift the taxes from the filthy rich to the working class.

ConservativesRSmart

April 22nd, 2011
1:15 pm

It is proven throughout history that the only way to create jobs is to lower the taxes of those that create jobs. So, yes, tax consumption because this doesn’t affect the job-creators as much. And, when the job creators are happy, everybody’s happy!

Why is it so hard for liberals to understand this?

The Snark

April 22nd, 2011
1:20 pm

ConservativesRSmart:

Because it isn’t true. If it did, Georgia would be awash in jobs, since we have one of the rock-bottom lowest tax burdens in the country. But instead, we have 10% unemployment.

The Ghost of Lester Maddox

April 22nd, 2011
1:22 pm

Yee haw! Adding tax reform to the plate will give them Democrats an extra battle to fight as they try to prevent the Repubs from doing to them what King Roy and Cup Bearer Bobby Kahn did to them during the last redistricting.

What fun! Well, at least it would be if we weren’t paying for each day of the ‘entertainment’.

ConservativesRSmart

April 22nd, 2011
1:22 pm

Billy Bob – How many people do you hire? I used to hire 100s, but then I stopped because of the uncertainty liberals created when they threatened to punish me for no reason by raising my taxes! So, if liberals want jobs, I suggest that they provide me certainty that my taxes will never go up. Then, I might consider freeing up some of my cash to hire again.

Johnny

April 22nd, 2011
1:29 pm

FairTax is clearly the best solution. It would eliminate a lot of jobs, but those jobs do not create the value that they cost right now. It is tough to admit, but sometimes certain jobs become obsolete due to technology and the strive for efficiency.

FairTax would actually create the same amount of tax revenue that the current tax system does. Tax revenue is related almost exactly to the GDP and not the tax rate. The great thing is though, that people would be able to have more money based on how much they work / earn, and then spend it as they please.

ConservativesRSmart

April 22nd, 2011
1:29 pm

Snarky – You don’t get it. Gov’t needs to prove that they care about job-creators first by eliminating their tax burden first! Then, as everyone knows, prosperity will follow for everyone else. The federal gov’t is trying to make that point with their new budget proposal. Eliminate welfare programs and regulation. The job-creators know how to create prosperity. Gov’t should trust them with the funds to grow the economy because they are the ones who know how to do it! It’s the American way!

Is there a Bigger Fool -- then

April 22nd, 2011
1:51 pm

ConservativesRSmart???

brandon

April 22nd, 2011
1:52 pm

Let’s just make politics a sport, that way there could be an offseason…

Aquagirl

April 22nd, 2011
1:57 pm

Yeah, great idea Republicans, all those poindexters from GSU will be unavailable. They won’t be confusing the masses with numbers and math and other egghead stuff showing you’re raising taxes and screwing the middle class.

Ken

April 22nd, 2011
1:57 pm

When you say eliminate welfare are you talking about business subsidies, and all the absurd tax write offs that businesses get?

eatmotacos

April 22nd, 2011
2:01 pm

They are crafting a make believe tax law to emulate the make believe immigration law. Apparently, that isn’t very difficult, given the electorate. They still don’t comprehend that Deal and his proteges were able to slide through a law that didn’t address the root cause of the immigration fiasco – the employers. The middle class will end up paying all of the taxes too. Same crooked politicians – same benficiaries – same losers.

ConservativesRSmart

April 22nd, 2011
2:10 pm

Ken – Like it or not, there are reasons for the “absurd” tax write-offs. Liberals have got to stop demonizing successful people who have rightfully earned their place in society and keep their hands off of our money. Every time there is a socialist attempt to redistribute wealth, we have to pay lawyers, lobbyists, and accountants cash to create what you call absud tax write-offs that offset socilaist attempts to take our money. Leave us alone – we’ll create the jobs. When you prove that you will, we’ll stop using our cash for dividends and stock buybacks and use it to hire you people instead.

jd

April 22nd, 2011
2:12 pm

Funfilled facts — more than 75 percent of Georgia businesses pay 0 state tax — so, why aren’t they creating jobs?

Itsmeagain

April 22nd, 2011
2:18 pm

Obvious troll is obvious

ConservativesRSmart

April 22nd, 2011
2:20 pm

jd – Sounds like you can’t read, so I’ll help. Reason > Liberals, through their job-destroying policies, their threats to raise taxes on job-creators, and their refusal to take the spending problem serious, have created an environment of uncertainty to the job-creators of the state. So, it makes more sense for them to hold onto their cast until Liberals rehab themselves or go away!

ConservativesRSmart

April 22nd, 2011
2:26 pm

Don’t know “Obvious troll is obvious” means, but it’s probably another liberal attempt to discredit those who make things happen in the world. The days of handouts from the gov’t by taxes paid by job creators are over, folks. Time to start earning your keep – or get out! Socialist Europe would be heppy to have you.

mike

April 22nd, 2011
2:33 pm

What’s the problem. You goobers voted these clowns into office. Since they have been in the only thing they have dealt with is the HOPE program. No jobs except for their family and friends. They tried to pass a tax reform only to have the economic folks at GSU tell the public is was actually a program to raises taxes. Now they will wait until the summer and sneak it in. But you folks deserve what you get from the governor and his crew.

George

April 22nd, 2011
2:51 pm

The Govenor already agreed to extend unemployment benefits so you can collect big bucks to sit around and complain about not having a job all day. What more do you want? Stop looking for the easy way out!

Laner

April 22nd, 2011
3:06 pm

Let’s get serious, the states that are doing the best, in the “laboratory” of the republic system, have no income tax at all, and use state sales taxes. See: Texas, TN, FL.

Bob

April 22nd, 2011
3:07 pm

Govenor Deal, let’s play this summer. 1. Pretend to not have whole industries still using illegal aliens, wholesale, to make their profits. So long as they are not new hires, the new E-Verify law doesn’t apply to them. 2. Pretend it’s a Tax reform and simplification bill your are trying to pass: Which really is the Republican’s plan to shift the income tax burden to the middle class in their plan to flatten and broaden the base (grab your wallets). Good bye itemized deductions(no more charitiable deductions or home mortgage interest deductions). 3. Pretend backdoor meeting are not going on to bring gaming to Georgia: Keep saying horse racing won’t turn into full blown casino gaming when the Cherokee tribe, in North Georgia, finally gets formally recognized by the federal government, expected any time now. What else explains Mayor Cox of the City of Dawsonville trying to get his very own commercial regional airport in the middle of no where (with his 200 voters), on land he strangely annexed from Bill Elliott?

yea right

April 22nd, 2011
3:10 pm

@George

not every rich person works at all; sometimes its who you know and how many ppl you can screw over. i think a flat tax is the way to go for all levels of income. But when i see things like this; they better remember there is more of us than them

http://www.cnn.com/video/#/video/bestoftv/2011/04/21/exp.arena.banker._wives.taibbi.cnn?iref=allsearch

yea right

April 22nd, 2011
3:20 pm

conservativesRsmart; lol, you have been hoodwinked and dont even know it; its not about dems or republicans; Its how much can I steal.

seems we lost real men and women of honor long ago; cause everyone today has a price; except maybe one that thinks like a founding father; Ron Paul

abc

April 22nd, 2011
3:58 pm

Fair Tax is a loser.

If you tax based consumption, and people suddenly consume drastically less, with falling real estate prices, and overall dramatic recession, how does that affect tax revenue? Sound familiar? Do you think that an economy such as that of the past few years would leave serious budget deficits due to lack of consumption, ergo lack of tax revenue?

A flat tax sounds great. Eliminate all writeoffs, credits and loopholes, and tax everyone’s income at a flat rate. That way, we wouldn’t have such an imbalance of who’s paying what for taxes — 45% of the country winds up paying no payroll taxes at all.

Last Man Standing

April 22nd, 2011
4:16 pm

ConservativesRSmart:

Wouldn’t you think that job creation is going to be a problem as the people who create the jobs don’t know what to expect from D.C. next? It appears to me that many of the would-be job creators are not optimistic about Washington’s policies toward business, quantatative easing and the debt/deficit issues.

Ray

April 22nd, 2011
4:34 pm

Johnny, fair tax is not good for young families. The plan to flatten the tax rate, just to raise it on lower income families ( because, yes younger families usually make less than those with teen or college age children). I can remember hardly being able to wait for my kids to be out of diapers to have a few more dollars in my pocket. Or, the need for high price tutors to come to an end. The less these families will have to spend on their kids in the future, the further behind we will be as a country.

red herring

April 22nd, 2011
4:40 pm

despite the state unions (aka associations) we should simply put the sales tax back on groceries and prescription meds and get rid of income tax. That would handle it all and would a fair tax to everyone involved. I realize their are some that simply don’t want to pay any taxes at all but those are ending and will not return. at least with a sales tax on groceries and prescription drugs we would tax visitors and illegals also.

Retired

April 22nd, 2011
4:46 pm

Don’t mess with the senior retirement income exemption … or we will vote you out of office. Don’t you have anyone better to pick on that retired folks.

hind tit

April 22nd, 2011
4:53 pm

Can someone come up with the amount of money the state puts in verses the money state workers and teachers put into their retirement fund.

Think About It

April 22nd, 2011
4:56 pm

Lower taxes to increase hiring – interesting concept; let’s review how it has worked in practice over the past 30 or so years…

1. Reagan lowered taxes in his first year in office, 1983. How did the economy respond? By improving? Not quite; it actually got worse. It wasn’t until he raised taxes in 1984 (and then again successively 7 more times while in office) that the US economy really start to get going.

2. During George W. Bush’s presidency, we saw some of the largest tax cuts in history – to both individuals and corporations. How did that fare for the country? By wildly increasing income disparity, driving down middle class earnings to a 1970s equivalent amount while the top 1% of earners took home an even bigger piece of the pie each year.

Wow, this sounds like tax cuts are really good for the rich, but not the larger population. But doesn’t this recent history sort of fly in the face of the conservative argument for lowering taxes?

For a final point – in the same 30 year period, when was the US in the most sound financial footing? During the Clinton presidency? When taxes were MARGINALLY higher for the highest earners? So, recent historical evidence suggests that marginally higher taxes might actually go a long way to improving our country’s finances.

Wow.

No More Raw Deals

April 22nd, 2011
7:37 pm

Unfortunately for most of us, Nathan Deal and the GOP only want to cut taxes for corporations or the elite 2%, the idle rich. This foolish policy hasn’t worked for the last 50 years; the problems just keep getting worse and worse.

Maybe the Governor can furlough a few more teachers and firemen or cut Hope scholarships again! I’m sure the trust fund babies need another big tax cut.

double

April 22nd, 2011
10:46 pm

Don’t you all worry about Deals son in law=Clint Wilder started work Jan 31 at the Gerrgia health care asso.director of program development-The association hired Sarah Denise Ralston as an intern,and she is registered to lobby at state capitol.Matt Ralston is being paid 1000.mo to intern for GeorgiaLink public affairs group,one of the statehouse most prominent lobbying groups.Deal and Ralston take care of their own.Monday feb.7 ajc

double

April 22nd, 2011
11:02 pm

Can’t spell Georgia sorry about that.couple more margaritas….

Shudow7071

April 23rd, 2011
9:28 am

Heck, I think two strikes and yer outa there! Ger er done I always say…I’m just sayin I don’t think we need another dog gone stadium!