Published: January 07, 2008 11:05 am            

Tax reform tour stops in Atlanta

ATLANTA — The Georgia Budget and Policy Institute in partnership with AARP Georgia, the Georgia Municipal Association, the Georgia School Boards Association, the Georgia Association of Educators, and the Georgia Coalition United for a Responsible Budget will be presenting the final stop of the Tax Reform: A Reality Check Tour in Atlanta on Wednesday between 1 pm and 4:30 pm at the Loudermilk Center, 40 Courtland St.

The Georgia Legislature is considering several tax reform proposals that could have a dramatic impact on Georgia communities, especially city and county governments, and local school boards. Among the various proposals is the GREAT Plan which would eliminate all homestead property taxes for education and property taxes on personal motor vehicles. School districts and local governments would receive lost property tax revenue from the state. In an attempt to make up lost revenue, a state sales tax of 4 percent would be instituted on consumer services, lottery tickets and groceries. In addition increases in local property tax revenues would be capped, and the value of homesteads would be frozen.

"The tax policy changes that are being proposed by legislators are not small or insignificant," said Alan Essig, executive director of the GBPI. "Everyone should be aware that these proposals are very risky and do damage to our foundation of local government, local control and the stability of revenue for our most basic government services."

The workshop will provide attendees with the most up to date analysis of the GREAT Plan as well as presentations from state and national experts on options for property tax reform and the impact of local revenue limitations.

Presenters at this workshop will include:

Alan Essig, Executive Director, Georgia Budget and Policy Institute

Sarah Beth Gehl, Deputy Director, Georgia Budget and Policy Institute

The Honorable Mayor Shirley Franklin

Dr. Jack Parish, School Superintendent, Henry County

Dr. David Sjoquist, Director, Fiscal Research Center, Andrew Young School of Policy Studies, Georgia State University

Dr. Daniel Mullins, Associate Professor, School of Public Affairs, American University. The GBPI has long advocated a comprehensive tax reform process for Georgia that applies a rational criterion for consideration of tax changes. This process includes:

Solidifying the state's tax base to assure adequacy and the lowest possible tax rate for all citizens

Improving the fairness of the tax system and applying targeted tax relief exactly where it is needed.

Advancing the tax base for a 21st century economy, recognizing the changes in lifestyles.

Improving tax stability to enable the state to withstand economic variations and recessions

Increasing accountability of tax expenditures - state funds spent to spur economic growth.

"Georgia has an opportunity to develop a tax system that will enable us to address the education, transportation, and water problems we face. To do that, we must focus on policy and budget considerations, not political considerations," said Essig. "Proper tax reform will only be accomplished through a thoughtful, open and informed process."

The organizations sponsoring the Tax Reform Reality Check Tour hope to generate a positive discussion of taxes and their purpose so that Georgians are fully prepared to understand the proposals currently under discussion by the legislature.

For more information on the developing tax proposal, visit the GBPI web site at www.gbpi.org.

        

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