House Dems Claim Early Victories Against Repubs Tax and Pretend Proposal

Abrams says full-throated advocacy stalled the measure

Atlanta, Ga. – March 30, 2011 – Today, House Democrats claimed early victory in slowing the pace of a dangerous proposal that would raise taxes on middle class Georgians.

HB 387, a tax proposal by Republicans, claims to provide broad tax reductions to Georgians. But while providing tax breaks for Georgia’s highest wage earners and holding Georgia’s poorest harmless, the measure actually raises taxes on the middle class.

“Our full-throated advocacy stalled the dangerous march of this middle class tax increase. Republicans have been working in huddled groups to tweak a proposal that has serious flaws. We are happy to see a broad coalition of voices joining Democrats, including the Georgia Tea Party and Americans for Prosperity. This is truly grassroots powered,” Abrams said.

Republican lawmakers have not been able to explain the financial ramifications of the measure. A fiscal note on the bill showed only cumulative numbers from the Georgia State University Fiscal Research Center. However, a review of the more granular data revealed the tax increases for the 90 percent of families who make between $100,000 and $180,000. For some the increase is as high as $419.

HB 387 moved out of a special tax council on Tuesday, March 29 with little discussion and questions from only Democrats Rep. Stacey Abrams and Sen. Steve Thompson.

The proposal was expected to come to the House for a vote on Wednesday. Instead, feeling the heat from taxpayers, Republicans have spent the day trying to fix an already broken measure.

“The choices they are foisting on the middle class are too difficult. The bill will force families to decide between taking a mortgage deduction for their federal income tax or pay higher state taxes. For too many of our families, it is not a choice at all,” Abrams said.

Abrams acknowledged that HB 387 contains critical improvements to state energy taxes and to retirement income exemptions. Unfortunately, Republicans have cherry picked pieces from a larger tax reform proposal.

“They chose what they liked and discarded the pieces they didn’t like. The problem becomes ‘who pays?’ As the bill is currently configured, the middle class loses,” Abrams said.

Abrams explained that Georgia has historically chosen tax winners and losers – either corporations get a tax break or individuals.

“Our state’s tax policy should examine tax fairness and how the state should best benefit. Tax reform should never pit classes of people against one another,” Abrams said. “Good fiscal policy improves the state of the economy and those who participate.

House Democratic Whip Carolyn Hugley said too many uncertainties exist and the rush to get a bill passed will take too large a toll on rural families.

“Deals are happening around the Capitol as citizens learn what is at stake in this bill. But in trying to clean up their mistakes, the narrowness of the margin of error is too slim,” Hugley said. “In a time of fiscal unrest, and a state budget with huge shortfalls, we can ill-afford to gamble with taxpayer money,”Hugley said.

“We can’t continue to rush important policy decisions if we want to improve Georgia’s antiquated tax code. 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,” Hugley said. “Georgia families deserve better than Tax and Pretend Republicans.”