Perdue Signs Two Bills To Boost Business

Businesses in Georgia could be in line for substantial tax breaks, following a pair of bills signed into law by the Governor.

One piece of legislation changes how tax credits are earned by companies doing business in the state—allowing bigger breaks for more higher-paying jobs added. The other bill would end the tax on business inventories—this however needs a constitutional amendment through a voter referendum.

Both measures moved through the Legislative session with little resistance.

Thomas Smith, assistant professor with Emory University’s Goizueta School of Business, says even with state budget shortfalls, direct help for companies is good:

"I think we’ve got to worry about first thing’s first, and worry about the state budget second. And the first things we’ve got to worry about are--are the businesses able to do business? And if they can’t, then, who cares about the state budget."

Still waiting to be signed by Governor Perdue--legislation to give tax credits to businesses that hire unemployed Georgians for a certain length of time, and to reduce long-term capital gains which would be subject to federal taxes.

Tax Breaks Pushed to Spur Hiring

Unemployment is at a record high. To help create jobs, state House Republicans want to pass a series of tax breaks to businesses.

Businesses would get a $2,400 income tax credit for each unemployed person they hire before July 1 of next year and keep on the job for at least two years. The package also includes a $500 credit toward unemployment insurance taxes for those new hires.

House Republicans hope the measure will give businesses an incentive to hire out-of-work Georgians, as well as lure new companies to the state. Additionally, the state would reduce the 6 percent corporate income tax and eventually eliminate it.

The breaks could save businesses upwards of a billion dollars.

Opponents say there’s no guarantee the package will create good-paying jobs; the tax-breaks kick in even for those hired to work 30 hours a week.

They also criticize slashing revenue at a time when more Georgians rely on the state for health care, education and other services.

The bill will go to the House floor for a vote this week.

(The Atlanta Journal-Constitution)