home

Chattanooga Times Free Press: Business tax cut bill given second chance

By Ashley Speagle
Correspondent

ATLANTA -- A North Georgia lawmaker's job-creation bill that the governor vetoed last year is coming back to life.

Rep. Tom Graves, R-Ranger, said Wednesday he'll announce today a slightly reconfigured version of his proposed Jobs, Opportunity and Business Success Act. The bill would offer tax credits and eliminate the corporate income tax to encourage business growth and new employment.

The bill passed the state House and Senate last year with bipartisan support, Rep. Graves said.

Gov. Sonny Perdue vetoed the bill because he believed it "would have blown at least another $1 billion hole in the budget," said Bert Brantley, the governor's spokesman.

Rep. Graves said his 2010 bill will retain some aspects from last year's but also contains new ideas.

"There's a strong focus this year on expanding small business," Rep. Graves said. "Each component has a unique impact on small businesses and is more about job creation."

He said the bill could encourage business development, ease unemployment and bring in new revenue.

Gov. Perdue recently proposed slashing $1.2 billion from the state's $18.6 billion budget. Georgia's unemployment rate in December was 10.3 percent, figures show.

But Mr. Brantley said Gov. Perdue's position last session was that the bill was not conducive to balanced budget requirements and low revenues.

"There'd be a delay between when we give the tax benefits and when we see the economic impact," Mr. Brantley said.

The parts that give tax breaks to businesses that hire new employees aren't the big-ticket items, Mr. Brantley said. Gov. Perdue remains concerned about the most expensive proposals in the bill, such as eliminating corporate income taxes, he said.

According to state budget documents, corporate income taxes will generate $575 million this year and about $581 million in fiscal 2011.

Gov. Perdue did sign another component of the bill last year that eliminated inventory tax on businesses, and Rep. Graves said he will separate another piece of the JOBS Act bill this year but didn't specify which one.

Rep. Graves said Wednesday that he's spoken with Gov. Perdue about the bill.

"There's certainly not been a commitment from the governor, but there's been open dialogue and a lot of options discussed," Rep. Graves said.

Mr. Brantley said the governor will wait to see the bill in its final form.

"We'll have more months of revenue numbers by the time the bill comes to him," Mr. Brantley said. "There's no parameters on the bill."

At a meeting with Chattanooga Times Free Press reporters and editors before the start of the session, several North Georgia lawmakers said they wanted Rep. Graves to bring the bill back.

Rep. Martin Scott, R-Rossville, a co-sponsor of the bill last session, said he wants to make the bill difficult to veto this year by including other legislation that Gov. Perdue will want to sign into law in his last session as governor.

Several other legislators said they will push the JOBS Act again this year.

"A bill like this will make sure we have the infrastructure to have the edge on other states and nations," said Rep. Tom Weldon, R-Ringgold.

Rep. Graves will discuss his bill today at a press conference with details of its potential impact on the state budget and job growth, and the bill may be introduced in the House today or by early next week.

Rep. Graves is a candidate for the 9th Congressional District seat in Northwest Georgia held by U.S. Rep. Nathan Deal, R-Ga., who is running for governor.

JOBS ACT HIGHLIGHTS: