GBPI: Tax Cuts Mean Service Cuts

A new report released Monday shows proposed tax cuts would cost Georgia some 1.5 billion dollars over the next five years.

The report comes from the Georgia Budget and Policy Institute, an organization that looks at how state spending impacts government services. The group is concerned
about a pair of legislative bills that would give companies that hire out of work employees a 2400 dollar tax credit and cut the capital gains tax in half.

Conservative lawmakers who designed this plan say it would create at least two thousand jobs in the state. It's now on the Governor's desk waiting for his approval. GBPI's Allen Essig says the Governor needs to continue "being a responsible budget Governor. If he signs these bills, it will guarantee the state will have untennable deficits in the future."

Essig says that would mean a reduction in education, road and health care funding. Governor Sonny Perdue has not indicated what action he will take. The Governor's press office did not return calls for comment.