Politicians talk about doing important things. More often, you end up getting more of the same.
Think about the seismic legislation in Washington, D.C., which has affected everyone. It is hard to do.
I am 43 years old. The most consequential legislation of my lifetime was the Affordable Care Act in my opinion.
I am a small-business owner; every year I navigate this law I despise. In my one-person business it is the most expensive item in my budget. I dislike this legislation with every fiber of my being. It has made my life significantly more expensive.
Employees complain about their health care premiums, and I understand why. But it is even more damaging to a small-business owner.
Property tax reduction proposal is bold but misguided
Credit: hand
Credit: hand
In January, I saw the Republican-controlled Georgia General Assembly dig into an overdue conversation about affordability.
Very rarely do you see House of Representatives Speaker John Burns put his name on a bill. The bill’s author is Rep. Shaw Blackmon, R-Bonaire.
They want to reallocate some of the pennies in the consumption-based sales tax for local governments to curb and eliminate property taxes.
I commend them for a bold strategy. You do not see elected officials stick their neck out there very often like the private sector.
I appreciate the concept that the Georgia House is after, but I sat in local government. Just because it sounds amazing, it does not mean that people care. For four years sitting in elected office, no one ever asked us to reduce Alpharetta’s millage rate. From 2018-2021, it never happened.
The other issue is bonded debt – if your constituents vote to bond improvements for a parking deck, a road, park, or a sidewalk. Bonds are paid by property taxes for five, 10, or even up to 30 years through general obligation bonds. Those payments are reflected in local property tax bills. They are done so in broad daylight.
Bonds are voted on by residents. If your local government has the trust of its constituents, those measures pass overwhelmingly. State and local elected officials cannot desire amenities and simultaneously not fund them – only Congress has that luxury.
Republicans grapple with this concept. Although I disagree with Representative Blackmon and Speaker Burns on this singular item, I commend them.
Elon Musk blew up a lot of rockets with SpaceX before they landed one. Today, it is no longer newsworthy when it is seamless.
On the other hand, reducing the income tax makes sense
Credit: Arvin Temkar/AJC
Credit: Arvin Temkar/AJC
I have been more impressed with the Georgia Senate’s bill to get rid of subsidies and reduce the state income tax. Sen. Blake Tillery, R-Vidalia, has a plan to offer individual filers their first $50,000 tax free. With married filers that number increases to $100,000.
This means if you are a married couple with a household income tax bill of $100,000 or less, you pay $0 in state income taxes. That is a tremendous savings to nearly every middle-class wage earner.
One would think Democrats would support this concept, but they oppose the idea. Tillery’s plan goes on to get rid of about half of the economic development tax carveouts in Georgia. Tillery also cites that if I buy a computer, I pay full freight on sales taxes. If a company like Microsoft is buying $15 million in computers or chip sets, they pay no sales taxes at all. Microsoft’s market cap is $3 trillion. How is that fair to the little people like me and you?
Lt. Gov. Burt Jones deserves credit for this as well. If he were not the lieutenant governor, Georgia may never have begun reducing the state income tax at all. I believe the angst against him in the governor’s race extends from his desire to reign subsidies from the political elite.
The final half of the legislative session will see fireworks as people campaign for re-election and higher office. But only one party is talking about how to realistically address affordability.
You are not going to expand affordability by catering towards subsidies and special interest groups. You only going to address affordability by allowing Georgians the opportunity to keep what is rightfully theirs.
Although I endorse the Senate plan to eliminate the state income tax. Representative Blackmon and Speaker Burns should be applauded. America functions best in meritocracy, they have given you a good argument, it is just not the best one.
The Republicans in the Georgia General Assembly have given you a robust lesson in what is best. Remember, when it is time to pull the lever. Georgia Republicans are doing important things, and they are having hard conversations about how to save you money.
Ben Burnett is a business owner and former member of the Alpharetta City Council. He is a Republican. He is a contributor to the AJC.
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