Georgia investors dreaming of a slashed capital gains tax cut appear to be out of luck.
Gov. Sonny Perdue said Monday he will veto House Bill 481, which would have cut the tax on profits of certain investments by 50 percent. His decision led one business association to call on lawmakers to override Perdue’s veto when they are next in session and prompted one of Perdue’s political acolytes to declare herself “disappointed.”
Perdue told reporters he would veto H.B. 481 because “while I agree with stimulative activity, unlike the federal government who can run a deficit, Georgia is a balanced-budget state and we cannot run a deficit.”
Estimates had suggested the bill, which would also offer businesses tax credits for hiring unemployed workers, would cost the state more than $1 billion. Given the state’s revenue situation — Perdue announced Monday that April’s tax collections were off by 20 percent from April 2008 — that was too high a tab.I applaud this decision by Perdue. This bill would have blown a huge in the deficit that the state would have paid dearly for in 2012. Finally, a little common sense from our governor.