Georgia is the state for business

By State Senator Ronnie Chance

Georgia is open for business and will remain that way as long as we don’t raise taxes. During times of economic downturns and declining revenues, you will hear a variety of suggestions on how to turn around the economy. These suggestions can be as reasonable as tax incentives for job growth or as outlandish as raising taxes on struggling businesses and families. Raising taxes in Georgia is not an option. Georgia is poised for an economic turn-around utilizing free-market principles.

Companies want to locate where taxes are low. Georgia has one of the lowest corporate income tax rates, ranking 42nd in the nation according to Georgia State University’s Fiscal Research Center. Georgia also ranks 35th in the nation on total per person tax burden, making jobs more attractive. By maintaining these low taxes, Georgia is attracting companies, growing jobs and turning around our economy. Over the next five years, our state should see growth of more than 22,000 jobs and investments over $560 million from companies relocating to Georgia. For example, NCR Corporation announced earlier this summer that is has selected Duluth, GA for its worldwide headquarters campus and Columbus, GA for a new North American manufacturing plant, bringing 2,000 additional jobs. Last year, NCR expanded services in Peachtree City investing over $15 million and creating 560 new jobs. Others companies locating in Georgia include:

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#1 dogboy on 11/03/09 at 07:58 AM

What a load of bull. First, as every Georgia property owner now knows, the legislature did raise taxes on them and not the big corporations who contribute to the politicians in return for lucrative tax breaks. Second, businesses will stop relocating to a state that is destroying its system of higher education, has already destroyed its K-12 system and is letting its infrastructure from roads to water go to hell while funding Go Fish and Sonny's retirement property fund.

#2 Enoc Siuol on 11/03/09 at 10:19 AM

It’s not just about jobs but jobs that pay well enough to allow one to stay above the poverty line. Anything else has to compete with foreign labor. That means it needs to be a company that requires personnel with the technical skills to manufacture a low volume high end product. A company requiring mass production will have to get tax incentives in order to stay competitive. That means our hard earned tax dollar going to a company just to keep them in business. Without a highly skilled labor force the US will never be able to compete internationally. The NCR plant in Duluth Georgia is a good example of what we need more of.

#3 Anonymous on 11/03/09 at 03:42 PM

We need better schools, teachers, less politicians telling how good they are and how bad the other team is, and better parents.

Not more same ole same ole rhetoric about low taxes and bad stimulus while the state raises taxes on people and cuts services.

Taxes on the middle class have steadily gone up since the 70's when you count all the take aways. Ronnie, tell us where Carters went. Did they leave because of their taxes? How about Ford? Was it their taxes? What about the helicopter plant that started but could not find skilled labor to hire? Was it their taxes that made it impossible to find skilled labor?

Next election vote them all out.

#4 Anonymous on 11/03/09 at 09:32 PM

Whatever! Guess you keep on getting your paycheck every month. Whay don't ya'll boys up there in Atlanta give up your pay for this next session and see what it feels like to go without a paycheck. Bunch of blowhards! Sen. Chance, have you ever run a business and had to make a payroll each month or balance a budget, collect receiveables, market a product, pay business taxes, etc?

#5 Anonymous on 11/03/09 at 09:34 PM

Need the "FAIR TAX PLAN" now! If people could keep all of the money they earn and pay taxes at the retail level we would see this economy explode wideopen.

#5.1 Tom Rauch on 11/04/09 at 09:47 AM

What a genuinely stupid way to tax!

Any retail tax would have to be 30-40% on goods, and that would include gasoline and food.

Bill Gates and the rest already pay a disproportionately low tax rate compared to middle class people, and with retail tax it would get even worse. The incentive would be to hoard money and not spend, or do back-door trades without traceable cash. This would kill our economy.

The only people who would benefit from this are the people with a lot more money than they need to live and people who live in an underground economy.

What we really need is a flat tax on income and workfare programs to replace welfare and unemployment. This stupid retail sales tax idea would kill what is left of our economy. It probably came from some radio or political blowhard who make a few million a year.

#6 Dan White on 11/04/09 at 06:45 AM

Free Market principles? Kia is a $400 million
Republican giveaway. Jekyll Island-another Republican giveaway to politically connected Linger Longer Development. NCR-another Republican giveaway of tapayer millions to induce corporatate investment. I can create lots of jobs by giving state money away.
We call this leadership-I call it pandering.

#7 Anonymous on 11/04/09 at 06:49 AM

Say, what is the status of our Chinese friend that was bringing all those jobs to Lamar?

..crickets...

Thanks IDA, doing a fabulous job. LOL.

#8 Paul on 11/04/09 at 08:28 AM

I'm no financial genius, but to me it would make more sense to give 400 million in tax abatements to build a car plant, which would create jobs for people, than to give 400 million away to people who refuse to work. To me, the logic says that the 400 million spent on the Kia plant would be recouped far more by the increased spending by the work force brought in by this plant. It's really a simple net present value problem from finance class.

On the other hand, 400 million given away to people who won't work is a sunk cost. It'll never be recouped. That goes right back to the old saying, 'give a man a fish and he eats for a day; teach a man to fish and he eats for a lifetime.' Spending 400 million on people who won't work is simply throwing fish.

#8.1 Tom Rauch on 11/04/09 at 10:33 AM

Paul,

Let's assume the Kia plant cost taxpayers the 400 million dollars mentioned above. That's $333,333.33 we paid per job to Kia.

Let's say the plant employs those 1200 people at an average of $25,000 a year (I'm guessing). That's $30 million a year in wages. If those people pay 50% of that money back in taxes that's 26.6 years to get our money back in taxes.

Now if it was a Georgia owned company a lot more money (the profits on sales) would be staying in Georgia and contribute to the tax base. If it is a foreign owned plant the profits largely go out of county.

The real truth is none of these giveaways, whether from a local IDA or a state giveaway, are really much different than welfare. They are just a different form of welfare. In this case it is foreign corporate welfare where more of the money we pay in taxes goes out of our country.

For example let's change the 400 million to welfare. Now we have people spending the money on food, clothes, video games, toys, and cars. More than half the money stays in the USA and is eventually brought back in taxes. We've funded more people and still have about the same return on our investment.

Either way we give away our money, we give it away. One way is foreign corporate welfare that trickles some money down to people, the other way just directly hands it to people.

What I would do is start a public works project that could only use things produced, mined, or manufactured with content that was mostly USA content. Then the 400 million puts people to work and the money all stays here, and we have something to show for it sooner.

Do you think the Koreans would pay Ford to build a plant in Korea? How about the Japanese?

The only country with people and politicians stupid enough to put foreign manufacturers on what amounts to "corporate welfare" is the USA.

In Barnesville/Lamar we pay about $100K a year or so in wages and benefits to find ways to put domestic and foreign companies on welfare. This is so people wasting tax money can say "look at the money and jobs we brought in", feel important, and get re-elected or keep their public-funded jobs. This is exactly what Ronnie Chance is doing. Protecting himself and his team.

Corporate welfare is not a solution to our continuing stupidity of the last 40 years. It just proves we are all desperate as well as stupid. Welfare extends beyond the poor person next door. It extends to City Hall, the State legislature, Washington, Wall Street, and now even to South Korea.

It is all funded by the middle class.

#8.1.1 wdm on 11/05/09 at 10:46 AM

Where did the $400 million amount come from? I was googling to see the exact amount paid and I saw where the state provided $258 million in incentives. Plus, something else not provided in ya'lls debate are the 5 to 6 parts producers who will also open up within close proximity who will provide another estimated 2000 jobs. If the main amount of incentives is cut in half and the jobs are doubled, it will change much of the math you guys have come up with. I got the 258m amount from a CBS article.

#8.2 Enoc Siuol on 11/04/09 at 10:36 AM

I agree with you to some extent. First the money spent on the unemployed comes from a pool of money paid into by employers so that they “can” easily lay people off at their discretion in order to maintain their profit margin. It’s kind of like an insurance policy controlled by the state. The 15 million American’s who are looking for work until recently had a job and would continue to have one if it wasn’t for the greed of our country’s financial sector. I bet 99% would work if a job was made available. Unemployment insurance paid into by employers is a way to provide some sense of order to the havoc capitalism reaps on our society. When the unemployment rate goes up so will suicide, divorce, domestic abuse, drug or alcohol abuse, as well as, various other crimes, like burglary.
The “only” reason the KIA plant is here is due to the state and federal tax incentives. It’s socialism or welfare on a corporate scale. It goes against the basic rules of capitalism that a company should stand on it own ability to maintain a profit or bow to competition.

#8.2.1 Anonymous on 11/04/09 at 11:48 AM

When unemployment is collected taxes go up on businesses. It is not free money from heaven. It is just a form of better-hidden welfare.

#8.2.1.1 Enoc Siuol on 11/05/09 at 04:26 AM

I don't understand how you could exspect a person who makes $13.50 per hr. to not live from pay check to pay check. Over the last 10-15 years the cost of living has gone throught the roof. The high paying jobs are gone for ever. There was a job posted on the net the other day paying $13.5 per hr. and it receive 600 applicant in 48 hours. Many were people with college degrees. 17% of the work force is unemployed, given up looking for work, or in a position well below what they are qualified for.

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