March 22, 2008
Valdosta (Georgia) Daily Times on Cutting Taxes to Stimulate the Economy
Cutting taxes will stimulate Georgia's economy
By Mark Burkhalter, Valdosta (GA) Daily Times
Great leaders of free and prosperous societies get this economic concept: when government cuts taxes it stimulates the economy and brings more revenue into public coffers.
Consider some honored statesmen who turned their nation's economies around with such creative tax policy. John F. Kennedy, Margaret Thatcher, Ronald Reagan just to name a few.
They each enacted significant tax cuts which not only stemmed recessions but brought more revenue to their governments.
When taxes are cut, consumers have extra cash and they spend it. They buy a new pair of jeans, go out to dinner, take a vacation or purchase the latest flat-screen television. That creates more jobs and generates more tax revenue for federal, state and local tax coffers.
The best predictor of future behavior is past behavior, so we know that's exactly what will happen when Georgia families don't have to pay "the birthday tax" on their vehicles annually. They will spend that new-found money.
The Georgia House has adopted legislation to allow voters to abolish this offensive ad valorem tax on personal vehicles. The Senate should quickly follow.
. . .
According to the Tax Foundation in Washington, D.C., New York State, meanwhile, responded to 9/11 by raising taxes which in turn hurt that state's economy. Only when those taxes expired did New York begin to recover.
If Georgia voters approve the constitutional amendment this November to remove "the birthday tax" on vehicles, it will be phased out over two years. The revenue will come from growth in our state's tax receipts. Even with some naysayers concerned about recent revenue projections, state economists predict continued healthy growth next year with state revenues to increase 4.5 percent while maintaining our reserve funds. Other states would love to be in that financial condition. [Read the full article.]
