Phase Out State Income Tax
Posted in the Blairsville Forum
#1 Jan 28, 2013
Doesn't say a thing about how they plan to replace the revenue, maybe it's not really needed since so much of these costs have been shifted to the local level, or maybe they don't want to talk about that part of the deal.
Sen. Mike Dugan Co-Sponsors Constitutional Amendment to Phase Out State Income Tax
ATLANTA (January 17, 2013) Sen. Mike Dugan (R-Carrollton) co-sponsored Senate Resolution 8 in the State Senate today. SR 8 is a proposal that would create a constitutional amendment to phase out the Georgia State Income Tax.
In order to continue developing Georgias economic competitiveness and promoting job creation, we must move toward eliminating the sales tax, said Sen. Dugan.I intend on working diligently to pass this important resolution which will allow hard working Georgians to take home more of their pay check.
The Georgia income tax rate is 6 percent. Several states do not have an income tax including Florida, Tennessee, Texas, Wyoming, Washington, New Hampshire, Nevada and Alaska. Other states have the abolition of their state income tax under consideration, including North Carolina, Louisiana and Nebraska.
If approved by Georgia voters, Senate Resolution 8 would phase out the income tax completely by the year 2027. This process would be gradual, reducing the tax rate by .5 percent every year until the income tax is eliminated.
Sen. Josh McKoon (R-Columbus) proposed the resolution and other sponsors include Sen. John Albers (R-Roswell), Sen. Butch Miller (R- Gainesville), Sen. Steve Gooch (R- Dahlonega), Sen. Judson Hill (R-Marietta), Sen. Chuck Hufstetler (R-Rome), Sen. Brandon Beach (R -Alpharetta), Sen. Hunter Hill (R-Smyrna) and Sen. Barry Loudermilk (R- Cassville).
Amendments to the Georgia Constitution may be introduced in either the House of Representatives or the Senate. An amendment must be approved by a 2/3 majority of each legislative chamber in order for it to be placed on the ballot for voter approval.
Makers, Takers, Fakers
By PAUL KRUGMAN
Published: January 27, 2013
...Meanwhile, back in Louisiana Mr. Jindal is pushing a plan to eliminate the states income tax, which falls most heavily on the affluent, and make up for the lost revenue by raising sales taxes, which fall much more heavily on the poor and the middle class. The result would be big gains for the top 1 percent, substantial losses for the bottom 60 percent. Similar plans are being pushed by a number of other Republican governors as well.
Like the new acknowledgment that the perception of being the party of the rich is a problem, this represents a departure for the G.O.P. but in the opposite direction. In the past, Republicans would justify tax cuts for the rich either by claiming that they would pay for themselves or by claiming that they could make up for lost revenue by cutting wasteful spending. But what were seeing now is open, explicit reverse Robin Hoodism: taking from ordinary families and giving to the rich. That is, even as Republicans look for a way to sound more sympathetic and less extreme, their actual policies are taking another sharp right turn.
#2 Jan 28, 2013
They're gonna get a BIG chunk of revenue from the new title tax being charged on vehicles, while they boast about eliminating the ad valorem tax they're actually going to hit you for a really huge chunk of cash the next time you buy a new or used vehicle. Government, regardless if they're repubs or demos,, never do anything to save you money.
#3 Jan 28, 2013
They will replace it with a sales tax. Most people have state withholding from their check and then get the majority of it back with a tax refund. People that don't recieve a refund are the ones who pay the state income tax. In other words...the top 1%...will be paying less and the poor and middle class will pay more. They will put a sales tax on everything including labor, haircuts, all the things that are not taxed now. They will say that they are doing great things because they are doing away with "income tax" but the only ones it will really help are the upper class. It will hurt middle class and the poor. The sad thing about it all......people will support it because of the party that is in power.
#4 Jan 29, 2013
Today you pay a 7% sales tax when you buy a new or used car.
You also pay an ad valorem tax on the vehicle when you re-new your tag.
With the new title tax you will pay a one time fee of 6.5% for this year. This one time fee incorporates both the 7% sales tax and the re-newal ad valorem tax.
In other words, you don't pay both of these taxes, you only pay the one time tax of 6.5% which covers both taxes. Next year when you re-new your tag you will not have to pay the ad valorem ever again when renewing the tag.
You are getting a big tax break when buying a vehicle.
#5 Jan 29, 2013
On vehicles you currently own nothing will change. But if you buy another vehicle from a dealer OR an individual, you will pay this tax. And guess what, you don't pay it based on what you actually pay for the car, you pay it based on what the state says it's worth. Ask any used car dealer here and they will tell you the state's assessed value is much more than their asking price in most cases. And that tax can go as high as 9% in the next few years. Big tax break, hahaha.
#6 Jan 29, 2013
Funny, every time the politicians come up with a plan to save me money, I eventually find out that somewhere in the fine print I ended up paying more. My guess is that somehow this is the same.
A few other nifty facts on this tax:
1) The new tax will start at 6.5 percent of the vehicle's value. It will go up to 6.75 percent in 2014 and 7 percent in 2015.
2) Anyone who moves into Georgia from out of state will have to pay the title tax on any car they register here. That's not going to help real estate in North Georgia which relies heavily on out-of-state move-ins. Imagine moving to the mountains with a pair of $15,000 cars and suddenly having to fork over an immediate $2100.
3) The new tax now aplies to Used Private Party Sales. If you are low income and buy a new $4000 -$5000 car every few years, you are going to get nailed compared to the old ad valorem system. And when you sell your old car you are going to get hit with a high tax bill now, including when you trade in your car.
Pennies add up. And now they have the new law that allows people to pass on the 1.5%- 3% additional fee for all credit card transactions. You pay Federal Tax, State Tax, County & State Sales Taxes, SPLOST, LOST, ESPLOST, then on top of that you get dinged another 2 - 3% on the transaction fee, and your money already gets a monthly bank fee. Then if you are just about any kind of professionaal you have mandatory licensing, reeducation and other fees. And I think what really pisses people off is NOT these fees, but the fact that those getting them waste them.
If we're going to be taxed to death - at least get rid of the corruption, fraud and waste and use the money wisely.
I smell the collapse of America.
#7 Jan 29, 2013
OH MY! And I forgot to mention Property Taxes!
And lets not forget Toll Roads and Gas Taxes. The Government and Banking System is just a big fat bloated bucket of wasteful $#!T. They have created a financial syatem and infrastructure system that is unsustainable. To keep it going they need more and more and more money. It will crumble in a big blaze of anarchy, chaos, looting and rioting at some point.
#8 Jan 29, 2013
you are correct on current vehicles owned, the tax remains the same. Every year you renew your tag you are assessed an ad valorem tax based on that vehicles value. If you own it for the next 5 years you will pay that tax every year. When you brought the vehicle you paid a 7% sales tax and are now being double taxed every year you own it by the assessed ad valorem value.
With every vehicle purchased after Mar 1, 2013 you will pay a one time fee at 6.5%. Any sales tax on that vehicle is credited back to you to offset that 6.5%.
That 6.5% is a one time fee as long as you won the vehicle, you will never be charged a yearly ad valorem tax every time you buy your tag.
For instance, a $30,000 vehicle will incur a one time fee of $1950 for as long as you own the vehicle. That same vehicle will cost you $2100 in sales tax when you buy it.
That $2100 is credited toward the lifetime $1950 as long as you own the vehicle. The difference of $150 betwenn the 2 numbers is all the extra tax you will ever pay on that vehicle. When you renew your tag there will be no ad valorem for that vehicle.
Under the present condition if you purchased a $30000 vehicle you would pay the $2100 sales tax, a ad valorem tax in the neighborhood of $300 when you but the tag and keep paying that ad
valorem taxevery year you renew the tag.
It ain't rocket science to see it is cheaper with the new way of paying taxes on a new vehicle.
In fact, it is a tax cut by the General Assembly because folks have bitched about the yearly ad valorem tax on vehicles for years calling it double taxation which it is.
As far as taxes go, the government is gonna get their pound of flesh one way or another. They have their high salaries and special interest to take care of and their retirement systems.
And Georgia and the Counties may come up with another way to get more money out of us, but as far as killing the yearly ad valorem tax on vehicles goes, I see it as a win for taxpayers.
#9 Jan 29, 2013
you are correct, the percentage will go up. My understanding is it could eventually climb as high as 9%.
As for the rest of your post I have no disagreement with it.
Here's something else to consider...the credit for the sales tax is good only if the vehicle was NOT purchased in a private sale.(read no sales tax if purchased from a private individual.)
What this means is you will pay the title tax value on that vehicle when you purchase it from a private party. To me, this means I will consider paying a private party something less than the value of their car as I will be the one paying the new title tax at present value of 6.5%
If vehicles are passed between immediate family members, there is a reduced fee of .5%(1/2 of 1%) of the car's worth to title that vehicle, PROVIDED the full one-time title ad valorem tax has been paid.
Also vehicles that are not titled such as boats and trailers are not affected by the new law, you will continue to pay an assessed ad valorem tax on those vehicles.
#10 Jan 29, 2013
One of the main reasons the title tax was made law is because of the disparity of the ad valorem tax from one county to the next.
Under the present system I pay the ad valorem tax at present Union County tax millage rate, which is appox. 16 mills.
Other counties have a millage rate as high as 45 mills. People in those counties pay a lot more on the annual tag renewal ad valorem tax than I do under the present system.
#11 Aug 18, 2013
The increased revenue would come from the additional payroll taxes created by the new jobs being created and by the increased sales taxes generated as those new employees spend their buying things in Georgia. And possibly eventually by increased property taxes as you eluded to.
#12 Aug 18, 2013
Floridians keep their residency in Florida to avoid paying Ga State tax, a consequence is that they can't vote here.
This could really change the political scene.
#13 Aug 19, 2013
I hear our democrat in hiding governor wants to replace the sales tax with a tax on labor and services. So you'll pay more when you get a haircut, visit your dentist, have your car serviced, have remodeling work done on your home, etc. I can guarantee you this talk about tax "reform" is nothing but a tax INCREASE.
#14 Aug 19, 2013
Meant to say income tax, not sales tax. It's late and I'm tired.
#15 Aug 20, 2013
Get rid of all taxes!!!!
#16 Aug 24, 2013
I see this 'eliminating the State Income Tax proposal' as a direct tax (by taxing sales which we can not avoid) on Senior Retired folks since pensions and Social Security payments are exempt from Georgia Income Tax now. This tax would add to the already 4% Georgia sales tax and probably double it. This would make an item purchased in Union County 8% plus 3% for local SPLOSTs a total of 11% for everyone. This hurts Seniors who are retired on fixed income. Sales tax come straight out of our income from pensions and SS.
This is why I vote against all sales tax increases.
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