by Phil Kent, SLF President
As appeared in the Atlanta Journal & Constitution, July 31, 2002
In the 1998 Georgia gubernatorial race, the party nominees outdid themselves with tax cut promises. The next year, Gov. Roy Barnes and the General Assembly followed through with the largest tax cut in state history, a billion-dollar, four-year reduction of the state's unemployment insurance tax, as well as significant property tax relief.
This year's crop of GOP gubernatorial candidates have similarly thrown down the gauntlet, promising hundreds of millions in tax relief for Georgia's sometimes-forgotten (and fastest-growing) voting constituency. It's a smart move, for more reasons than simply harvesting votes.
Georgia's burgeoning over-65 population spent decades lining the surplus-heavy state coffers, making Georgia one of only a few states with multi-year, multi-million dollar surpluses.
Despite a recent economic slowdown, Georgia is on target to meet and exceed its fiscal 2003 budget of more than $16 billion - Barnes' tax cuts included.
The state legislative budget office estimates that seniors contribute approximately $450 million, or 2.8 percent of the state budget, in annual income taxes.
Although the GOP candidates differ in their proposals for easing the state tax burden on seniors, the basic idea is to eliminate some or all of the income tax burden on Georgia's seniors.
Many of the same Chicken Littles who cried about Barnes' billion-dollar unemployment insurance tax cut are back again, this time pointing out that the economy is weak and, therefore, tax revenues will be down.
Essentially, we are told by the tax-happy harpies that the state of Georgia simply can't afford a seniors tax cut.
Sorry, guys, the same old song doesn't play as well anymore. Barnes proved it with the unemployment tax cut. Although unemployment has risen in Georgia in recent months, the unemployment insurance fund is in great shape, easily able to meet its increased burden for benefits without triggering a new hike in taxes.
Why? Because the unemployment insurance fund maintained a huge surplus, paid over decades by Georgia's employers.
Sound familiar? Georgia's seniors helped build a strong, vibrant and growing economy, fueling year after year of state budget surpluses.
In the Governor's fiscal 2003 budget report, the state's $16 billion annual budget includes nearly $700 million in overpayments by Georgia's taxpayers - almost three-quarters of a billion dollars more than the state needed to run its budget in fiscal 2001 and 2002.
The sky will not fall, and the state budget will not explode, if Georgia's elected leaders see the wisdom in a timely, meaningful tax cut for our seniors and for those who come to Georgia as a result.
