Monday, May 11, 2009

Gov. Perdue to veto capital gains tax cut, HB 481

According to Bert Brantley, Gov. Sonny Perdue's director of communications, the governor will veto House Bill 481.

The bill includes a rollback of the state's capital gains tax, as well as numerous tax credits meant to spur hiring, and particularly the hiring of unemployed workers. Perdue has previously expressed concerns that the state, in an ongoing budget crunch, might not be able to afford the tax cuts.

Said Brantley, via e-mail: "He confirmed today that he will veto it during a q&a session at a bill signing."

UPDATE: The governor did sign House Bill 261 today, which provides a $1,800 income tax credit for home purchases. It takes effect immediately and will be available for six months.

UPDATE 2: Gov. Perdue's comments on 481, as transcribed by his press office:
I am not going to be able to sign because while I believe in simulative activity, unlike the federal government who can run a deficit, Georgia is a balanced budget state and we can not run a deficit. So while I believe that many of the provisions in 481 would stimulate job growth and the economy, it has to be affordable or its not possible. And at this point, I don’t know that its possible based on the fiscal situation that we are in. I would love to see some of the provisions of 481 implemented once the economy begins to grow again and we can afford it, that to trim off that growth, we can afford it at that time. We are a balanced budget state and at this point in time I think unattainable to bridge from where we are to get where they believe the stimulation would kick in. So unfortunately as much as I regret it, I won’t be able to sign 481.
UPDATE 3: April revenue figures are in and no doubt contributed to the governor's decision.

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