Georgia tax reform commission holds first meeting

ATLANTA — Gov. Sonny Perdue called to order the first meeting of a special tax reform commission Wednesday afternoon, then passed the chairman’s position to banker and former Atlanta Olympics executive A.D. Frazier.

Before he did, the governor noted that persuading the Legislature and new governor to approve the commission’s eventual recommendations will be critical and difficult.

No one knows who the governor will be next year when the commission submits its recommendations for changing the state’s tax laws, and nearly one-third of the legislature that created the commission will not be returning.

“The tough work begins when the ball is handed off because there are going to be some things that are not necessarily politically palatable,” Perdue said, adding that legislators might be skittish, as any tax change can be used as a weapon by political opponents.

After all, total taxes could go up as a result of the recommendations.

Frazier said after the two-hour organizational meeting that the commission is focused on drafting job-creating policies rather than aiming for a certain level of state revenue. It is not bound to any requirement to hold steady the total taxes brought in by the state, he said.

“I expect to see our actions as a manifestation of economic development, as a manifestation of job creation, good business judgment, not so much an effort to fund existing expenditures,” he said. “Someone asked if it will be revenue-neutral. I don’t expect it to be revenue-neutral at all.

“We’ve got a gap in the state budget because of a loss of stimulus money. So, we may flatten the rate and broaden the base. I don’t know.   I refuse to speculate on what we’re going to do.”

Frazier said he will decide how to proceed in future meetings around the state based on what other commission members want when he confers with them individually. He couldn’t say whether they would devote individual meetings to certain types of taxes or look at policies next.

The commission will present its recommendations Jan. 10 to a special legislative committee that will draft them into a single bill.

Lawmakers in the House and Senate won’t be able to make any changes in the bill before they vote on it. Neither will the new governor,  who will have the power to veto it.