State Lawmakers Talking Tax Reform for 2014 Session

MACON, Georgia (41NBC/WMGT) — Tax reform could be a big topic when lawmakers head back to the capitol in January 2014.

“Taxes during an election season is very sexy for Republicans,” said State Representative James Beverly.

You’ll probably see it on GOP agendas in January, but what could tax reform look like? Majority House Leader Larry O’Neal is hoping the 2014 session will trigger the start of a big shift, beginning with simplifying the tax code for business owners.

“We have a duty to preserve those people that are out there in the captalist and free market, taking those risks. Those are the Georgians that elect us, and we need to make taxes easier to comply with,” said O’Neal.

O’Neal says you might see a reduction on income tax too, and down the road it could even be eliminated. He favors a move toward the consumption, or sales tax.

“I decide when I’m going to pay it, and I decide how much I’m going to pay, so I can plan my own budget,” said O’Neal.

It’s a philosophy starkly different from his Democratic colleagues in the house, who fear more pressure on sales tax to fund a budget creates more pressure on the average Georgian.

“The consumption tax puts downward pressure on folks that don’t make a lot of money,” said Beverly.

“That’s my concern for everyday Georgians. An increase in sales tax for them is going to require for them to have to pay more at the store,” said State Representative Patty Bentley.

Bentley wants to look at reforming the code, but fears tampering with the current system too drastically will hurt her constiutents.

“As a business owner, and what we have to endure from a business standpoint, yes we need to look at it, but I want to be mindful of how I vote on any legislation regarding a tax reform,” said Bentley.

Beverly says if reform is going to be on the floor, it needs to be about how and where money is spent, not how it’s collected.

“Where do you spend it, and where do you create the most impact for economic development so that everybody can be incentivized and be a part of the growth in Georgia. That’s what tax reform should be about,” said Beverly.

Republican State Representative Allen Peake says states with no income tax are benefitting bigtime, and Georgia should consider heading in that direction.

“You look at Texas which has the fastest growing economy, they have no state income tax… If all the sudden we expand the sales tax base, maybe all of a sudden start collecting from those who are here illegally as well,” said Peake.