That crosses the line
Flawed tax plan would have Augusta consumers spending more across the river
Augusta Chronicle Editorial Staff
Sunday, January 27, 2008

Not to worry, says Georgia House Speaker Glenn Richardson.

Under his proposed tax reform package -- which includes a 4-percent statewide sales tax on fresh food and services -- he says Georgia's border cities would not lose consumers to businesses touting lower prices across the state line.

On the contrary. Worry.

It's a worry we pointed out on this page months ago in response to Richardson's flawed scheme to eliminate property taxes that pay for schools. It could be profoundly bad for Augusta's economy.

Let's be clear: People will go across the river to South Carolina to pay less for something. It's a phenomenon we already see with gas prices.

Will people cross the state line to get a better deal on getting their nails done? That's debatable. But how about the really pricey services, such as auto repair or home improvement?

Attorneys? Doctors? Wedding planners? Funeral homes? Now you're talking big money, and imposing a sales tax on services is a sure way to get Augustans to seriously consider purchasing those services in South Carolina.

Richardson's plan could be up for a floor vote as soon as this week. It needs to be voted down.

From the Sunday, January 27, 2008 edition of the Augusta Chronicle
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