Although Federal Reserve Chairman Ben Bernanke predicts the nation's economy could begin to improve sometime later this year, here in Georgia state revenue is still on the decline. And, that could mean trouble for a proposal to give tax credits to some businesses.
Earlier this year, the state legislature approved a measure intended to put Georgians back to work. The so-called Job Opportunity and Business Success Act includes a tax credit for hiring and keeping someone twenty-four months.
It sounded like a good idea, considering Georgia's unemployment rate currently stands at 9.3 percent. But, at the last minute lawmakers added a provision that removes the capital gains tax on investments. And, that’s why Governor Perdue is hesitant to sign the bill into law, because he says the state is already running a deficit.
"Georgia is a balanced budget state. And, it's very difficult to do the stimulus type bills in a state that's starved for revenue and cash at the same time. That kinda destroys a supply side theory within a state government because you can't afford that period of time before the supplies kicks in."The Governor has until May 13 to veto or sign the legislation. Meanwhile, officials April revenue numbers aren't in yet, but Perdue says things don't look good.
