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New study calls for
progressive tax reform in South
Center offers 11 policy ideas for
legislators to modernize tax code
ATLANTA, June 23, 2006 -- The Center for a Better South today issued
a 176-page policy book that calls on Southern legislators to rethink
state tax structures and make them more progressive.
"The South of today isn't the same as the South of our parents
and grandparents," said Center president Andy Brack. "We
live in a more dynamic Sunbelt that has transformed from the goods-based,
mule-driven days of the 20th century into a knowledge- and service-economy
that competes globally.
"Unfortunately, our state governments generally haven't adapted
to the new economy. Their structures have outdated tax components
that need to be modernized for today's market."
For example, Southern states generally started taxing incomes about
80 years ago when $12,000 was a good annual income. In some states,
that's about as high as the top bracket, which makes the income
tax structure virtually flat, not progressive as it originally was,
Brack said.
"State lawmakers should look at their taxing structures holistically
- at income taxes, sales taxes, property taxes and more - and develop
better ways to be fairer to everyone," Brack said. "Our
new book offers 11 ideas that legislators can use to make taxing
structures fairer."
The book, Doing Better: Progressive Tax Reform for the American
South, can be purchased online for about $10. Or Internet users
can download each idea through the Center's Web site for free at:
http://www.bettersouth.org/doingbetter
While the book focuses on 11 ways lawmakers can improve tax systems,
it also provides scorecards for 11 Southern states, including Georgia,
that chart how each state rates on each of the 11 ideas.
Georgia, for example, scores two out of 11 because it already has
updated its taxing structures to incorporate two ideas mentioned
in the book. Georgia has partially curbed corporate income tax loopholes
and has initiated a comprehensive performance review.
"Based on the ideas in our new book, Georgia has a long way
to go to create a truly progressive tax structure," Brack said.
"Its tax structure is ripe for modernization."
Brack said Georgia could create a more progressive tax system by
broadening its sales tax base through abolition of sales tax holidays
and a comprehensive review of sales tax exemptions to determine
whether they meet contemporary needs. It also could make sales tax
fairer by taxing more services. It also could make income tax reforms
and strengthen accountability to provide better government transparency.
The Center for a Better South is a pragmatic, nonpartisan
think tank dedicated to developing progressive ideas, policies and
information for thinking leaders who want to make a difference in
the American South.
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