The Economic Case for Capping Georgia's Income-Tax Rate

Monday, June 16th, 2014

If you think getting Republicans and Democrats to agree is difficult, try bringing partisans of Georgia Tech and the University of Georgia together -- especially when the issue is a contest that takes place in November.

But before the schools’ football teams renew their “Clean, Old-Fashioned Hate” rivalry, some of their professors will be standing on the same side come Election Day.

That’s the day Georgia voters will decide whether to amend the state’s constitution to cap the individual income-tax rate at its current 6 percent. This week, the person behind that initiative, Sen. David Shafer of Duluth, released a list of 17 economists -- including three Bulldogs and one Yellow Jacket -- who agree the change would give our state “a competitive advantage in attracting new jobs and businesses and in persuading existing businesses to expand.”

A number of people, particularly those who want to see tax rates fall, have questioned whether the amendment is worthwhile or just a fig leaf for legislative inaction. I agree it would be better if we not only capped the rate constitutionally but lowered it. So did the economists, representing 10 of of our state’s colleges and universities in all, who signed Shafer’s statement.

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