When the tax costs of operating in New York are only a fifth of the cost of locating the same operation in Wyoming, something unusual is going on. Yet that’s exactly what we find for new research and development (R&D...
- The Tax Policy Blog
- Georgia Officials Unveil Tax Plan
Georgia Officials Unveil Tax Plan
Less far-reaching than last year's recent tax reform plan, Georgia legislators this week unveiled a number of changes to their sales tax. There are some gimmicky ideas but many involve exempting business-to-business transactions, which is a move toward better tax policy. A properly structured sales tax should tax all goods and services once and only once, but many states tax business purchases. By doing so, tax is paid when the business buys raw materials and again when it is sold at retail: multiple taxes on taxes, or "pyramiding." This causes distortions and harms economic decision-making.
- Eliminate state sales tax on energy used in manufacturing
- Consolidates a patchwork of agricultural input exemptions into three general exemptions for energy, equipment, and other inputs (seeds, fertilizer, etc.)
- One percent tax exemption of commercial aviation fuel
- Eliminates annual property tax on cars, replacing it with a one-time title tax
- Reduces income tax for married couples by increasing their personal exemption from $5,400 to $7,400
- Reduces conservation easement tax credit
- Caps retirement income exclusion at $65,000 ($130,000 per couple)
- Eliminates sales tax exemption for film production (while keeping the state's popular but poor tax policy film tax credit)
- Two-year back-to-school sales tax holiday, a gimmick
- Orders out-of-state companies to collect online sales tax, which is unconstitutional
- Permits the state to waive sales tax on construction materials for select projects.
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The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.