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2008-02-07  BUSINESS | Conservative U.S. lawmakers rank Georgia 8th for economy
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February 11, 2008
The American Legislative Exchange Council ranked Georgia's economy eighth in the nation for its low business taxes, low workers' compensation costs, low minimum wage, no estate tax and right-to-work status.
The council's mission is to advance the Jeffersonian principles of free markets, limited government, federalism and individual liberty among America's state legislators. It was formed more than 25 years ago by a small group of state legislators and conservative policy advocates who met in Chicago to implement a vision. That vision was for a bipartisan membership association for conservative state lawmakers who shared a common belief in limited government, free markets, federalism, and individual liberty.
The ranking came in the council's report, Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index. It was a collaborative effort from authors Dr. Arthur Laffer, nationally recognized economist, and Stephen Moore of the Wall Street Journal.
According to the authors, Georgia is considering some very significant tax reform that would reduce or eliminate income and property taxes.
Georgia House Republican Majority Leader Jerry Keen told the authors last year, "We're committed to a pro-growth tax plan that announces to the country that Georgia is open for business."
One plan would overhaul the states entire tax structure and replace it with a flat rate 5.75 percent income and sales tax.
The authors identify 16 policy variables with a proven impact on the migration of human and investment capital in and out if states. According to their findings, a record eight million Americans moved from one state to another last year, revealing which states have the most dynamic and desirable economies, and which are "has-been" states.
The complete book is available online at www.alec.org; each state can be downloaded individually.
- www.northfulton.com
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Economic Outlook Rank (1=best; 50=worst): A forward-looking forecast based on the state's standing (equal-weighted average) in the 16 important state policy variables shown below. Data reflect state and local rates and revenues, and any effect of federal deductibility.
1) Top Marginal Personal Income Tax Rate: 6% Rank: 25th
2) Top Marginal Corporate Income Tax Rate: 6% Rank: 15th
3) Personal Income Tax Progressivity:
(change in tax liability per $1,000 income) $6.53 Rank: 24th
4) Property Tax Burden:
(per $1,000 of personal income) $30.48 Rank: 23rd
5) Sales Tax Burden:
(per $1,000 of personal income) $27.59 Rank: 31st
6) Remanining Tax Burden:
(per $1,000 of personal income) $12.94 Rank: 3rd
7) Estate/Inheritance Tax Levied?: No Rank: 1st
8) Recent Legislated Tax Changes: $0.19 Rank: 25th
9) Debt Service as a % of Total Tax Revenue 6.7% Rank: 6th
10) Public Employees per 10,000 of Population
(full-time equivalent) 540 Rank: 23rd
11) State Liability
System Survey:
(tort litigation treatment, judicial impartiality, etc.) 61.2 31st
12) State Minimum Wage:
(federal floor is $5.85) $5.85 Rank: 1st
13) Avg. Workers' Compensation Costs:
(per $100 of payroll) $2.20 Rank: 11th
14) Right-To-Work State?
(optional joining or support of union) Yes Rank: 1st
15) Number of Tax Expenditure Limits:
(0=least/worst; 3=most/best) 0 Rank: 29th
16) Education Freedom Index Score:
(vouchers, ease of private/home schooling, etc.) 1.68 Rank; 35th | |
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