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Saturday, May 19, 2007

Governor and House Speaker agree to disagree on taxes for now

Gov. Sonny Perdue and House Speaker Glenn Richardson (R-Hiram) say they are still friends, despite exchanging harsh words over a property tax cut the House pitched and Perdue vetoed.

Nonetheless, both stuck to their guns at the GOP convention Saturday.

Perdue defended his veto. He said the $142 million saved is now in the state's reserve fund, where it can be used to reduce long-term expenses.

"I've not going to go through this job eight years and enjoy life," he said, "then hand a tax bill to my children for them and my grandchildren to pay."

Perdue noted the state needs billions to shore up its pension plan.

But when House Speaker Richardson took the stage an hour later, he insisted that a tax cut would have been the better choice.

"I say we need to go slow on saving money," he said. "If we've got extra money, we’re either taxing too much or we need to send some money back, period."

There may be a second part to what both men characterize as a "family feud."

Richardson announced plans to overhaul the state tax system.

"I'm going to lead an effort to repeal the property tax on every house, every piece of land, every car, truck, every real property," he said.

Ultimately, voters would have to approve a constitutional amendment that repeals property taxes and allows the state to depend solely on income and sales taxes for revenue.

But voters would get that opportunity only if Richardson's plan passed the legislature and won Perdue's approval.

That's a big "if."

"There never has been tax reform legislation without the executive branch being involved and, frankly, I would expect an integral part in that," Perdue says.

He told reporters he still hoped to fulfill his campaign pledge to extend the tax break on retirement income.

Richardson contends that tax cut would benefit only wealthy seniors.

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