You may be aware that GA House Speaker Glenn Richardson wants to gut the Georgia tax system, based on a theoretical whim.
Radical Georgia Moderate reports this “money quote” from a recent interview with Richardson:
But you have to also remember that their [Local Governments] power to tax has been used at a rate about 30 points higher than personal income has raised in Georgia in the last 15 years.
A clarification is in order.
I’m going to copy a comment I posted at RGM:
That may be one of those “damn lie” “apple-orange” statistics.
And let me stress “may.” Because I don’t know what he’s referring to.
Does he mean tax revenues went up faster than gross domestic income, or does he mean tax revenues went up faster than gross average income?
If it’s the former, then it may be a fair comparison, depending (at the very absolute least) on the burden of federal unfunded mandates. These mandates have grown over the last 15 years, and they would certainly justify some rise in tax rates. The question is, how much have Georgia’s rates grown as a result of unfunded mandates, compared with other states?
If it’s the latter, then that’s a very unfair comparison because Georgia’s population grew tremendously over the last 15 years. Growth in average income is different than growth in gross income. And it would be fair to ask for a clarification from Mr. Speaker about what sort of comparison he’s really making.
So is Richardson making the claim that tax rates went up, or just revenues? I would certainly hope Richardson is capable of understanding the difference. But I wouldn’t bet on it.













