House Democrats Oppose Tax Bill

Tuesday morning Georgia House Democrats voted to oppose a Republican tax proposal Democrats say will raise income and sales taxes on the middle class.

"The tax council proposal of HB 387 is a shell game. Republicans have proposed raising taxes on the middle class. They're quick to say that they're lowering the income tax rate for most Georgians. What they don't say is that they're also eliminating many exemptions that help Georgia families.  They are taxing the middle class, but pretending not to," said Rep. Brian Thomas, chairman of the House Democratic Caucus in a released statement.

Though House Democrats agree the state’s tax code is in need of an update, Thomas said real reform is needed.

House minority leader Stacey Abrams, a tax attorney, said HB 387 had some positives, but was insufficient as a tax reform policy.

"Consumption taxes are inherently unpredictable, and this plan relies exclusively on three new sales taxes to accommodate its goals,” Abrams said. “Too many uncertainties exist - who pays more to make up the difference, the impact on middle class earners and rural families, and the narrowness of our margin of error.  In a time of fiscal unrest, cherry-picking winners and losers without a fallback position is a gamble we can ill-afford.”

Democrats also criticize Republicans for labeling HB 387 a jobs bill.

"The Tax Council proposal is not a jobs bill. The only news jobs created under this measure would be in the state's revenue department," said Rep. Virgil Fludd (D-Tyrone).

Fludd added the two percent decrease in tax liability would not be adequate to create new jobs or spur growth and investment by small business owners.

"While the legislature has had four months to focus on job creation and employment opportunities for Georgia's families, Republicans haven't delivered the first bill to address the worst employment climate in the state's history and an unemployment rate of 10.2 percent," Fludd said.

House Democratic Caucus Whip Rep. Carolyn Hugley criticized HB 387 as being “too little, too late.”

Hugley said Republicans had ignored the recommendations of their own tax council and said the bill’s passage was poorly managed.

"A bill given three hearings - the first without a bill, the second with a bill delivered as the meeting starts and a third on the very next day is poor management,” Hugley said.  “This is worse than the process Republicans decried during the health care debate.  At least that bill was available for the general public to review."

Hugley also condemned Republicans for waiting until the legislative session was drawing to a close to introduce major tax legislation.

"We can't continue to rush important policy decisions if we want to improve Georgia's antiquated tax code,” Hugley said. “Republicans removed some of the most promising items proposed by the Tax Council. We need to slow down and solicit citizen input before crafting and voting on a comprehensive tax reform package. Georgia families deserve better than Tax and Pretend Republicans."