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Cracker Squire

THE MUSINGS OF A TRADITIONAL SOUTHERN DEMOCRAT

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Location: Douglas, Coffee Co., The Other Georgia, United States

Sid in his law office where he sits when meeting with clients. Observant eyes will notice the statuette of one of Sid's favorite Democrats.

Saturday, July 25, 2009

Tough times require tough decisions, Part I: In Georgia, tax collections fell about 18.5 percent during the first half of 2009.

James Salzer reports in the ajc:

[H]istorically, governments don’t see an uptick in tax collections until well after an economic recovery begins.

In Georgia, tax collections fell about 18.5 percent during the first half of 2009.

State tax money in Georgia helps pay to educate about 2 million Georgians and provides health care to about 1.5 million people. The state pays a large portion of the salaries of about 125,000 public school teachers and employs another 100,000 Georgians. It regulates insurance and food safety, patrols highways, oversees elections and provides parks throughout the state.

2010 is an election year and no incumbent wants to run for office after voting for a tax hike. The General Assembly has consistently voted to cut, not raise taxes.

“There is one thing everyone is united on,” said House Majority Leader Jerry Keen (R-St. Simons Island). “We don’t raise taxes on citizens and businesses during a recession. Nothing would hinder a recovery more than raising taxes.”

Kelly McCutchen of the Atlanta-based Georgia Public Policy Foundation, agrees raising taxes right now is a bad idea.

“Barring another dip in the economy, we believe the 2010 budget can be balanced with cost cutting,” McCutchen said. “However, if state revenues do not start to normalize by next year, the 2011 budget will force some very difficult choices. Raising taxes would certainly be the last option you would want to pursue in a recession.”

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