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Monday, March 26, 2012 - 12:04pm

Tax Reform Impact Hard To Predict

A tax break bill that gives perks to businesses and cuts the property tax on motor vehicles now awaits Gov. Nathan Deal's signature. The state Senate unanimously approved it last week.

But some economists say it’s too early to tell what kind of economic impact the tax package will have.

The new tax changes include adding sales taxes to online purchases and income tax breaks for married couples. Budget officials estimate the tax breaks will create a 49 million dollar deficit next year.
That number sounds large, but to put it in context, it’s actually less than 1% of the state’s total 19.2 billion dollar budget.
Alan Essig with the Georgia Budget and Policy Institute says there are too many moving parts to truly see what effect the tax package will have on Georgia’s economy:

“It’s going to very difficult to identify the impact because it gets washed into everything else that is going on in the economy, and all the other impacts on revenue growth, or not growth. So it’s difficult to identify exactly what is that 49 million dollars and what is the impact of that, if it has any impact at all.”

Governor Nathan Deal supports the legislation which follows through on his tax promises made during his campaign.