Gawja – Open for Bidness

Georgia’s Economic Outlook Ranked First in the Nation

Georgia’s economic outlook ranked first in the nation according to a recent report by economist and advisor to President Ronald Reagan, Arthur Laffer. Georgia’s ranking has risen to number one over the past four years from 24th in 2002.

Laffer is known for developing the “Laffer Curve,” which illustrates his theory that cutting taxes in certain situations can lead to an increase in economic activity and government revenue. Laffer’s annual study, available at, is a seven-category analysis that compares state tax and fiscal policies.

Georgia’s success is credited in large part to its commitment to reducing the tax burden on its citizens and businesses over the past four years. Laffer also praised Georgia’s 2005 decision to determine corporate income taxes based on sales alone, a move that he predicts might save businesses $100 million annually.

“I am proud of the progress we have made the over past four years by reducing taxes and strengthening our economy,” said Gov. Sonny Perdue. “The report reaffirms what Georgians already know – that Georgia is a great place to live and do business.”



  1. However, a major pharmarmaceutical company just announced it would not locate it’s plant here but instead will go to North Carolina because they offer a better trained work force.

  2. Dorabill says:

    Not trying to badmouth “The Upstate” or the reasearch triangle (which is incredible) but one of the reasons Novartis located in NC over GA or MD is over $40 million in state and local incentives.

  3. Dorabill says:

    Actally I’m just a Populist/Republican who’s opposed to welfare for Corporations as well as crackheads. (and I’m a flagger too) But hey I still get to pay for it. US Health and Human Svcs gave them a $220 million grant. And I don’t even like vaccines.

  4. kspencer says:

    Actually, what I found fascinating was reading the thing and realizing the title doesn’t match the actuality.

    What the report measures is a combination of tax burden and tendency toward lowering it further. Laffer Associates are claiming that this is the sole – or at least the dominant – reason for economic growth in a state.

    The problem with that assumption is that scoring high on the LA report over the past few years has not had strong correlation with a state’s economic success. So I’m a little suspicious of the title.

    Because there’s more to economic wellbeing than a low tax burden on bidness.

  5. Chris says:

    Anyone familiar with the case of NC whoring itself to Dell Computers? Was it NC or SC, can’t remember. But that situation is a case study in what corporations are doing with our taxdollars.

  6. Dorabill says:

    I don’t know much about dat dere tax stuff but got no problem with the low corporate tax thing as long as it’s a level playing field.

  7. kspencer says:

    JasonW, no, not usually.

    It CAN be true, provided that both:
    a – the company’s willing to pass along the savings instead of increasing the profit margin; AND
    b – everything else, to include the things for which the taxes would be paying, remains equal.

    It is rare that both are true. It is not uncommon for both to be false.


  8. Jeff Emanuel says:

    HOWEVER, kspencer, both an increase in profit margin AND a decrease in prices can occur; even more common is an increase in profit itself and a decrease in prices.

  9. kspencer says:

    Jeff Emanuel,

    Can. Not usually, though. It still requires both of the conditions I stated to be true, and historically they’re not.


  10. Dorabill says:

    The only red carpet Gawja needs for business is a good climate for business (which we have) And if they make the money and pay the taxes it’s none of my damn business what they do with it as long as I’m not paying for it. (corporate welfare, pollution, eminant domain) The most Desireable businesses for Gawja are going to have the same goals. Your best widget maker wants to make widgets and won’t know a thing about influence peddling or back door politics.

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