Freshman legislator Jesse Petrea (R-Savannah) announced earlier this week that he plans to introduce a bill that will exempt military exemptions from Georgia income tax. According to Walter Jones, Petrea “said he would pay for his plan by boosting the tax on cigarettes 28 cents per pack, leaving the 65-cent total below the national average of $1.60. That shouldn’t put Georgia retailers at a disadvantage, but it would help discourage some youngsters from taking up smoking and developing an unhealthy habit.”
So, not only will this bill help veterans and help attract retiring veterans to Georgia, it’s going to help the children as well. Great.
As a purist, I am against any more income tax exemptions or sales tax exemptions. And I am against every single one we have on the books. Exemptions don’t provide for limited government – they actually make for more government. “Exemption” essentially means special treatment, and while I firmly believe our veterans should always be our first priority, this is an instance where the “solution” either needs to be applied broadly or not at all.
The tax code in Georgia is already overflowing with exemptions. Pipe organ sales. Mercedes-Benz. Film industry tax credits. They all serve a purpose at some point, but never sunset and then the tax code just complicates more and more and more.
The worst part about this is that no one in their right mind will have the ability to vote NO unless they want to see a primary opponent sending mail pieces claiming they ‘voted against veterans.’ The horror of principles of limited government.
The logic is circular and only perpetuates a problem we continue to face every cycle.
- Man introduces feel-good tax exemptions for a class of people
- Exemption reduces revenue
- Budget doesn’t get reduced
- Need more revenue
- Create new tax
- Complicate tax code
Lather. Rinse. Repeat.
I am not advocating for the Georgia General Assembly to continue to raise taxes, and I am certainly not pushing for our veterans to be punished. But sin taxes cannot be our fallback, unless the plan is to have alcohol selling for $120 a liter and pack of cigarettes to be priced at a mere $25/pack.
All this will do is create more problems somewhere else on down the line. But on a positive note, it will give anyone who voted for the $900 million tax increase for transportation a little boost with constituents.
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