GA Tax Revenues Are Up

An announcement was made today by Gov. Deal stating that Georgia’s net tax collections for November were almost $1.46 billion, an increase of about $60.5 million (4.3%) from November, 2013. This brings the net tax revenue collections to $7.7 billion for the fiscal year, which is up $359 million (4.9%) from last year.

Most of the increase came from the following:

Description Amount Collected Increase Over Nov. 2013 Percentage
Individual income taxes $747.68 million $53.5 million 7.7%
Net Sales & Use Tax $437.84 million $14.5 million 3.4%
Corporate income taxes $2.518 million $1.6 million 169.7%

 

The full report can be seen after the break.

Download (PDF, 20KB)

13 comments

  1. Harry says:

    And why do we need a Georgia corporate income tax? Corp collections are only 5% of individual collections YTD. Eliminating would be a great incentive to recruit business relocations.

      • Will Durant says:

        It doesn’t take too many bureaucrats to add up to a couple of million either, especially with their benefits. It appears to me that Corp is running at only 3 tenths of one percent of the Individual income tax at $2.5MM vs $748MM. What am I missing?

          • saltycracker says:

            Harry

            Take a look at just the top corporations in GA and explain the annual state take to under $250 mill…..agree, they are too smart, we could never unwind the legislative holes or sort out the taxpayer cost to admin, forget it and try another approach…..

            • saltycracker says:

              Even with our vast underground economy consumers (via individual and sales tax) will pay probably over $5 billion. Just taxing internet sales might dwarf all Corp taxes.

              Let business do its thing…..it is too expensive to play with them.

              • Harry says:

                Agree. Having a state corporate tax becomes a huge disincentive to growth of corporate business activity in this state. Given the (relatively) small corporate tax collected, it’s crazy to continue with it. But let’s not forget for the lawyers and accountants this thing creates a nice cottage industry and source of revenue enhancement. As is the case with federal estate tax which also collects very little money, the lawyers and lobbyists are the real enemies of rational tax reform.

          • Will Durant says:

            Whoops! That’s why I would have never been an accountant. Sorry, can’t go for a 5% reduction of tax revenues when we’ve just went through austerity measures these past few years to valid state programs like higher education.

  2. androidguybill says:

    @Harry:

    Put your theory to the test. Name the states without corporate income taxes that are economic powerhouses in attracting or growing high-paying jobs that do not depend on the extraction (i.e. oil, gas, coal) economy or tourism revenue.

    Also, people need to quit talking about corporate relocations.

    1. Corporations will not relocate HIGH PAYING JOBS here unless there is a skilled/educated workforce. Without that, companies will just use Georgia as a dumping ground for low wage work.

    2. The real economic growth doesn’t come from corporate relocations but instead growing your own companies and industry. The Georgia economic boom from the 1980s to the 200os wasn’t caused by getting companies to relocate here, but rather the creation and growth of tech, entertainment/media, transportation etc. companies. The economic bust was worse here than elsewhere because a lot of those companies either went bankrupt or were acquired and relocated, with the Ted Turner conglomerate (now operating primarily out of New York City) being a prime example. Right now Georgia has an entertainment boom going on – it brought $1 billion of badly needed revenue into the state last year – but without the local talent that exists due do the Turner Networks, the 90s urban music boom, and the local “artsy” schools like SCAD, ACA, AIA etc. Georgia would be like the many states that actually lose more money on their entertainment tax incentives than they make.

    Bottom line: you can cut taxes all you want and there will still be a ton of reasons for 1) a company to chose somewhere else over your state and 2) why your state can’t grow its own companies to begin with. Now I do not merely say that about cutting taxes: I don’t buy the whole “let’s spend billions on transportation infrastructure to attract corporate relocations” either.

    Tax cuts and infrastructure improvements are – at best – just plowing the soil. The entrepreneurs, innovators and skilled workers are the seeds, and we need to produce more of those. Really, it all comes down to education (and the cultural trends that inhibit education) especially outside metro Atlanta. If you think that cutting corporate taxes is going to cause companies to relocate 100 or so of Georgia’s 159 counties where agriculture (and agriculture-related manufacturing) is the only economy they have ever known, then you really need to read economics books more and missives from the TEA Party less. (And no, building highways and mass transit in those counties won’t bring in companies or the hipster tech talent either.)

    • Harry says:

      Texas is a state without a corporate income tax. It has a franchise tax which charges some businesses about 1% tax on gross profits. I’d venture to guess that Texas is more successful and with more growth than other states. The Northern legacy industrial states are dying with high taxes.

      As regards Georgia, we need to give up the idea that all parts of the state are created equal. It’s time we accept that 90% of this state is best suited for low density agricultural and forestry pursuits. We shouldn’t be spending money on highways to nowhere. Of course the road building lobby is fierce and undertakes great efforts to spend money in cooperation with the local Chambers of Commerce, and the lawmakers are in thrall. They run this state. It is our cross to bear.

      • androidguybill says:

        “As regards Georgia, we need to give up the idea that all parts of the state are created equal. ”

        So are you willing to provide public assistance i.e. food stamps, housing assistance, MediCare to the portions of the state where unemployment has not dipped below 10% in 20 years, and moreover what employment that exists is either A) very low paying or B) government jobs?

        Texas is a state without a corporate income tax? Yes.

        It is also a state with A) massive oil and natural gas revenues
        B) far more tourism revenues than Georgia
        C) more natural ports than Georgia
        D) spends far more on education – especially higher education – and infrastructure than Georgia

        Look, Texas is looked up to as some model by conservatives because it has some very conservative senators, congressmen and of course governors. But that is not the entire Texas story. Texas has a HUGE urban/liberal/progressive sector: high tech, universities, several urban areas etc. that do not buy into the Taxed Enough Already ideology. Those liberal areas play just as big a part of the Texas economic success story as the conservatives do. Also, their urban areas get a lot more help from the state than Atlanta gets from Georgia, including the fact that the state of Texas chips in to help fund their mass transit systems. You don’t see the dumb warfare between the city and the suburbs or the city and the state in Texas: THEY ALL WORK TOGETHER.

        The lack of a corporate income tax is the least important thing about Texas that Georgia needs to emulate. Instead, we need to emulate the reason why Texas actually has several large, home grown high tech companies, and not just IT companies like metro Atlanta, but companies that actually design and build electronics products and components like Texas Instruments, Freescale, AMD and Dell. Why does Texas have companies like that and we don’t? Because Texas has far more research universities (and a better K-12 too) which means far more skilled workers to support that type of work.

        And even better: Texas has high paying jobs in all areas of the state, even historically economically depressed west Texas. They never decided “we need to give up the idea that all parts of the state are created equal.” Texas is nowhere near as uniformly liberal as Ted Cruz wants you to believe. If it were, Wendy Davis would not have gotten 1.8 million votes (Nathan Deal got 1.3 million).

      • Will Durant says:

        Can’t find current numbers but as of 2011 Texas had $38.5 Billion in long term debt vs Georgia with $13.5 Billion.

        Evidence from a previous life has also shown that the forestry biz may be low density but still requires some heavy duty bridges in the boondocks. The “road building lobby” consists of many more players than the actual builders you normally cite.

        The lawsuit the Supremes have agreed to hear from Florida over water from the ACF basin wouldn’t be happening if South Georgia farmers hadn’t started irrigating from the aquifers that previously drained into the Flint primarily. The suit is going after the dams due to previous legal mandates to the Corps of Engineers, kind of like lawyers always going for the source of money in liability suits. Lake Lanier is only 5-6% of the drainage of the entire basin but metro Atlanta is getting near 100% of the blame for dead oysters. Here again we see how the low density pursuits don’t exactly justify lower taxes and they are not paying their fair share currently.

  3. saltycracker says:

    IMO, this is not about lowering taxes.Based on the above numbers the reason to end the corporate income tax is primarily us, the state efficiency and how they spend our money and secondarily the costs to businesses to produce the paperwork (saving them $).

    $250 mil less state admin cost is chump change for any one of our big corps. As Harry said it is just a front for attorneys, cpas, lobbyists, lawmakers and public workers to play with and selectively redistribute.

    There are a lot of more efficient and less corrupting ways to get a few hundred million in revenue.

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