Gov. Brian Kemp’s Office of Planning and Budget, worried about declining revenue into state coffers, is instructing all state agency heads to turn in budget reduction proposals by Sept. 6. In response to this belt-tightening, some state lawmakers wonder why so many tax breaks for large corporations making big profits have been popular in recent years.
While Georgia’s economy has been growing in recent years, earlier this year the General Assembly could only bring itself to pass a watered-down version of bills sponsored by state Sen. John Albers, R-Roswell. They would have mandated the state take a closer look at special-interest tax breaks before lawmakers vote on them.
Indeed, in 2018 legislators passed several special-interest tax breaks worth hundreds of millions of dollars. And earlier this year there were measures to provide tax breaks for Delta Air Lines and other air carriers and CSX and other railroads. Other bills stalled that would make profitable companies such as Uber, Lyft and Airbnb collect taxes.
While the governor and state House leadership appear to be supporting the giant fuel tax break for Delta and other airlines, Lt. Gov. Geoff Duncan and a large majority of the state Senate remain opposed to it as they look toward 2020. Many senators interviewed by InsiderAdvantage say there is no reason all too many hugely profitable corporations should be getting tax breaks, especially since the loss of this significant revenue into state coffers from previous exemptions is now being felt.
