UPDATE Via Tom Crawford @ Capital Impact:
Gov. Sonny Perdue will veto cut in capitol gains tax —
Says state cannot afford the revenue loss, which could be more than $1 billion annually . . .
I’ve been hearing rumblings that Governor Perdue may veto HB481, a key economic stimulus bill passed by the Legislature last session. HB481 would cut taxes for business and capital gains, a key component of supply side economic theory. Today the AJC points out that Perdue doesn’t consider himself an adherent of supply side economics and doesn’t think tax cuts are a good idea in tough economic times.
“Georgia’s a balanced budget state. And it’s very difficult to do the stimulus-type bills in a state that’s starved for revenue and cash at the same time.
So that kind of destroys a supply-side theory within a state government.”
I wonder, since Perdue has opposed and passed up opportunities to cut taxes even during good times when he ever thinks tax cuts are a good idea? Perhaps Governor Perdue and his economic advisors would do well to read the lectures found here and dig a little deeper, past the left-wing rhetoric, and learn the benefits of true economic stimulus.