Interview with the Speaker

I used a number of questions from Peach Pundit readers when I interviewed Speaker Richardson earlier today.

In his honor, I’ve chosen some intro music for the Peach Pundit podcast that, I hope, is right up his alley.

The Speaker talked about the tax reform and said a few interesting things:

1. This is it. He does not have a fall back plan. If this does not pass, he has nothing else he’ll offer.

2. Sales of land will not be taxes. If you sell your home, there is not sales tax. It is not contemplated as a

12 comments

  1. IndyInjun says:

    Hmmmmm…….right now contractors must pay sales tax on all materials. This is pretty ironclad in Georgia, unless an owner has enough exemptions that he is willing to take other real legal risks and jump through hoops for.

    So the Speaker’s ‘reform in motion’ would leave treatment of contractors unchanged, so that they would only charge the additional tax on labor, overhead and profit for remodeling jobs? Or would it allow them to purchase exempt for remodeling jobs, thereby presenting the contractors of the world more temptation than many can stand?

    As I see it, a sales tax on the end selling price of contract services (other than homes which was predictably too hot a potato to tax) is a very serious TAX increase, especially when one considers that the local taxes piggyback on the definition of the sales tax base. If the gross selling price is the tax base, then the base is being expanded not only by the labor, but also by OVERHEAD AND PROFIT. What is even more interesting, it means that the profit component is taxed twice, one to the consumer on the gross selling price and a second time as income tax to the contractor.

    Bear in mind, too, that all of these new sales tax collecting and paying businesses paid prop tax once a year and now have the fun of filing monthly sales tax returns, and paying every few DAYS if the federal version of “FAIR???” taxation passes.

    This is, like the federal “FAIR????”tax, beginning to look like a tax accountant’s DREAM!

    Shoot….gonna get me a gold-rimmed green eyeshade……

  2. SpaceyG says:

    Lordy, if there one sure-fire way to disengage the general public from the political process it’s to start yammering on and on and on and on about taxes. Taxes smaxes. Yawn… just get your attorney to get the trust to pay ’em, never call you after 5pm, and get back to the party.

  3. jsm says:

    Space, whatever you’re smoking sure is potent. “Yawn…” and disengaging from the political process did not build America.

    See James Garfield, “A Century of Congress” in Atlantic, July 1877, p. 63.

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