Mitch Seabaugh, a Republican from Sharpsburg, has introduced a constitutional amendment that would eliminate state ad valorem taxes, corporate taxes and personal income taxes in favor of a higher state sales tax on goods and services. Called the Georgia One Tax, it could be on the ballots for voters in 2008 and be effective Jan. 1, 2010.
Baiscally, this is a State version of a fair tax plan, similar to John Linder’s FairTax proposal. Although Linder’s FairTax proposal would tax goods and services at 23 percent — a proposal he’s been trying to get passed for seven years — Seabaugh’s One Tax would not exceed 6.5 percent. Currently, the state sales tax is 4 percent. The move to cap the tax at that level, Seabaugh said, would be a "revenue neutral" plan and would not add any additional money to state coffers.
State Sen. Chip Rogers, R-Woodstock, who helped Seabaugh with the plan, says the proposal is nothing new, as several states don’t have income taxes. Other states that do not have income taxes are Florida and Tennessee.
I am a huge fan of the Georgia One Tax, as well as Linder’s national FairTax plan.
I encourage you all to visit FairTax.org and become involved in improving our federal tax system. On the website you will read these reasons for switching to the FairTax plan:
* Abolishes the IRS
* Closes all loopholes and brings fairness to taxation
* Ensures Social Security and Medicare funding
* Brings transparency and accountability to tax policy
* Allows American products to compete fairly
* Reimburses the tax on purchases of basic necessities
* Enables retirees to keep their entire pension
* Enables workers to keep their entire paycheck
I would also like to point out that this type of tax will garner tax dollars from those who currently do not pay federal taxes at all, such as:
* Illegal Immigrants
* Black Market Sellers (drugs, sex, etc…)
* Law Breakers who just skip out on taxes
* Unreported Income now gets taxed when it is spent
Resource: Atlanta Business Chronicle: State version of fair tax plan
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