Better South issues first policy book

UPDATED 6/24

JUNE 23, 2006 -- In this new book of ideas offered by the Center for a Better South, we argue it is incumbent for lawmakers across the South to revisit their state tax codes in a holistic manner to bring our tax systems into the 21st century. (Go to book download page or buy the book.)

All components -- the income tax, sales tax, property tax and others --- should be thoroughly examined and modernized to improve and ensure the fairness, adequacy and integrity of our tax systems. In other words, lawmakers can truly represent people across the South by restructuring state tax codes to make them more representative of today's complex and rapidly changing economy.

Doing Better: Progressive Tax Reform for the American South ($10), written by Sarah Beth Coffey with Alan Essig, is the first of a Better South series that will examine tax and budget issues in the Southern states. The 11 ideas presented in this discussion are an introduction to progressive tax reform that can lead us to a truly better South.

From a 6/22 blog posting by the Atlanta Journal Constitution:

"The study urges a no-nonsense approach, such as eliminating sales tax holidays and exemptions on items like groceries and raising cigarette taxes to the national average....The report has a lot of interesting ideas, but the one we’d use for a conversation starter is, “Rethink tax preferences based on age alone.”

From a 6/23 column by Tom Crawford of Capitol Impact's Georgia Report (registration required):

"Georgia and its sister states in the South should consider restructuring their tax codes so that they are fairer to taxpayers and provide a revenue source that will enable the region to compete more effectively in the emerging marketplace of the 21st century. That’s the major takeaway from a report developed recently by the Center for a Better South, a Charleston, S.C.-based think tank that advocates progressive policies for the southern region."

From a 6/24 story in the Augusta Chronicle:

ATLANTA - Just as Southern cooking with lots of lard and butter isn't necessarily healthy, the way Southerners are taxed might not be the best way to raise money for government, a think tank said Friday.

The Center for a Better South released a 128-page proposal for how states such as Georgia and South Carolina could make taxes fairer while ensuring funding for vital services such as public education and health care.

"This is not necessarily about raising taxes," said Andy Brack, the president of the center.

Later in the story, a top Georgia Republican validated some aspects of the Center's report:

"Georgia) House Ways and Means Committee Chairman Larry O'Neal, a Warner Robbins Republican who leads a panel looking at tax reform, agreed that the issue needs to be approached in a way that doesn't dramatically affect state revenues. He also said sales-tax exemptions were a potential source of unfairness.

"The truth of the matter is, tax exemptions are just a redistribution of taxes," Mr. O'Neal said.

And, like the center, Mr. O'Neal pointed out that the state hasn't changed its income-tax brackets in decades. Currently, the state taxes all income above $7,000 a year at 6 percent, a number that hasn't changed since the state began charging the tax in 1937.

"We haven't changed our tax rates in 60 years," Mr. O'Neal said.