Tax Reform

© Dr. Gary D. Lemmons, September 30, 2007

Georgia House of Representatives Speaker Glenn Richardson is leading the charge for what is being called the Great Plan, a singular effort to reform the state’s system of taxation.  As might be expected, his efforts are being met by strong resistance from two power hungry elements in our state…local governance entities and the tax preparation bureaucracy.   

Under Richardson’s scheme, local property taxes on private homes, businesses, and vehicles would be eliminated.  In place of this, the state would levy increases in sales tax and remove the exemptions that are now on food and medicine.  Low income citizens would receive a tax refund on food and medicine but not on game boys and cigarettes.  Likely, sales tax would also be collected by such businesses as barber and beauty shops that currently do not collect sales revenue for their services.

Across the state, county commission members, city council members, and school board members are having a fit.  While they would almost certainly have more tax monies at their disposal under this scheme, they are suffering convulsions from the loss of power and control that they would have over levying local taxes.  It is a typical malady suffered by politicians, too many of which are life-long office holders.

The tax preparation industry has a more legitimate concern.  These folks make their living advising property owners and businesses as to how to navigate the myriad collection of state and federal tax laws (most of which seem to have been written in cuneiform by drunken scribes) and how to avoid paying as much tax as legally possible.  Anything that will simplify the tax codes (state or federal) will lessen the tax preparation bureaucracy’s esoteric hold over the citizenry in general.

Now, I am not saying that I endorse Richardson’s Great Plan at this point.  He has not really impressed me all that much as Speaker.  However, I am willing to view it with an open mind.  I am particularly interested in the fact that under this scheme more users of government services pay.  The preacher, the retired teacher, the factory worker (do we really have many of those left in the United States?), the shop-keeper…all pay.  The prostitute, the methamphetamine manufacturer, the illegal alien, and the dregs on the dole…all contribute.  I like that.

Richardson’s plan may not be the way to go, but the current trend of tax and spend government, embraced by only one kind of politician (the one in office) regardless of political party, needs to be changed.