AJC Headline: The fiscal insanity of a $220 million tax cut. (houses, university)

[rcsteiner]

The fiscal insanity of a $220 million tax cut | Jay Bookman

Any comments?

Why is the state of Georgia so willing to not collect money even when it seems it is sorely needed?

[Akhenaton06]

This reminds me of the article (http://www.wgnc.net/index.php?option=com_content&view=article&id=14214 :two-visions-of-what-n-c-can-be-christensen&catid=82:nc-news-by-google&Itemid=241 - broken link) someone else posted some time ago about taxes and budget battles in NC. Here's a pertinent excerpt that Georgia leaders would be wise to take heed to:

[U.S. Sen. Richard] Burr is as conservative as any of the Republican leaders in the [N.C.] legislature. Burr may be the closest thing in North Carolina to the political voice of the business community.

Burr said that despite the fact that North Carolina has the highest corporate and income taxes in the South, it is still winning most of the corporate and industrial recruiting battles.

"We've got a lot of warts in North Carolina," Burr said. "We are the highest-tax state in the Southeast. And we still win. We win more than our neighboring states."

The main reason, Burr said, is because of North Carolina's education system, particularly its university and community college system.

"When an employer looks at an investment in North Carolina, they are not looking at the return next year," Burr said. "They are looking at the return 30 years from now. They need a future workforce that has the skills and knowledge...

"When we talk about the things that work," Burr said, "let's not overlook what most employers in the 21st century are looking for - that's an educated workforce."

This "cut taxes, trickle down" crap doesn't work. Increase revenues (or at the least, don't reduce them) and invest in infrastructure and a skilled workforce. Otherwise, all you'll attract are a bunch of low-skilled, low paying jobs (call centers, warehouses, distribution centers, low level manufacturing, etc.) or companies that move here to take advantage of the tax breaks but wind up having to import workers with the necessary education and skills because they don't exist among the resident population--and many of these companies might wind up leaving after the incentives dry up. Both are losing strategies.

[testa50]

Didn't this already get shot down?