IS

YOUR
NAME
ON
THIS
LIST?
GEORGIA CRONYISM BOOKLET
The Politically-Connected

Wealthy Businesspeople

Yacht Owners

Music Producers

Musicians

STOP THE HANDOUTS

SPECIAL INTERESTS ARE

PREVENTING REAL TAX
REFORM IN GEORGIA
 TABLE OF
CONTENTS
4 Introduction

5 Frequently Asked Questions

6 HB 125 Yacht Sales Tax Exemption

7 HB 155 Tax Credit for Music Industry

8 HB 196 Special Treatment for Musicians

9 HB 199 Tax Credit for Video Game Companies

10 Legislative Scorecard

17 Citations

AFP GEORGIA: STOP THE HANDOUTS

By DXR (Own work) CC BY-SA 4.0 3
(http://creativecommons.org/licenses/by-
sa/4.0)], via Wikimedia Commons
ITS TIME This booklet was compiled to help educate the voters of Georgia about
TO REDUCE the tax policy problem we have in our great state. Second only to South
TAXES ON ALL Carolina, Georgia has the highest top marginal income tax rate among its
GEORGIANS neighbors at six percent1. Georgia currently has a reserve rainy day fund
of about $2 billion2.

Your hard-earned tax dollars should be treated with the same respect by
government as you do when making a family budget. Our government
should always be looking for ways to operate more efficiently and
effectively. It should always look to end wasteful programs, so that
Georgians can keep more of their hard-earned money.

During the 2017 legislative session, both the House and the Senate
passed versions of HB 329, which would have reduced the top rate from
the current 6 percent. But leaders in both chambers could not find a
compromise to send to the governors desk.

While this effort at lowering taxes on all Georgians failed, several egregious
examples of corporate handouts of taxpayer dollars passed either one or
both chambers. While there have been several other bills introduced or
passed this year and in the last few years, these four highlight the absurdity
of the cronyist approach to tax policy and economic growth. Some
Georgia lawmakers voted to give tax carve-outs to certain individuals and
industries in the state, to the tune of more than $480 million3 over the
next five years. These funds should have been used to cut the taxes of all
Georgians, not just those with political connections.

People working just to make ends meet cant afford to own a yacht, or
a music studio, or a video game production company. These bills give
special treatment to those who can afford them. When special interests
get tax breaks, the average Georgian is stuck footing the bill for the cost of
government. With each step towards cronyism, Georgia takes a step away
from true tax reform that would lead to greater prosperity in our state.

If you agree that all Georgians deserve a tax cut, not just those who can
afford a lobbyist, please let your Senator and Representative know.

AFP GEORGIA: STOP THE HANDOUTS 4

FREQUENTLY Q: Isnt it a good thing when taxes are
ASKED reduced, even if it is only for a select group?
QUESTIONS A: While we support reducing taxes, special tax breaks erode the overall
tax base, putting more pressure on those who cant get these special
exemptions. This type of policy also is inherently unfair it leads to
government policy favoring those who are well-connected over the
average citizen.

Q: Do these special tax breaks lead to a net

increase in revenue for the state?
A: No. In evaluation after evaluation of these programs, its been shown
that tax exemptions never pay for themselves and are economic losers for
the state.

Q: If AFP opposes these bills, what bill do

they support?
A: AFP supports lowering taxes for all citizens and removing loopholes in
the tax code.

Q: As a Georgia voter, what should I do with

this information?
A: Share it. Demand better. Let your Senator and Representative know
you want to get rid of these special interest tax breaks, and see real tax
reform in Georgia.

AFP GEORGIA: STOP THE HANDOUTS 5

HOUSE BILL 125
4

YACHT
SALES TAX
EXEMPTION
Favors for the well-connected
If the average Georgian has to pay sales tax on a purchase, then a yacht
owner should have to as well. This bill, which became law July 1, 2017,
gives a sales tax exemption for yacht repairs by capping taxes paid at
$35,000.. This favor for the yacht industry will cost the state over a
million dollars5 each year in lost revenue.

WE OPPOSED
We oppose tax carve outs for special interests.
This bill would give a sales tax exemption for yacht
repairs over $500,000.

FOR $1 MILLION WE COULDVE

HIRED 26 NEW POLICE OFFICERS
THIS YEAR.*

* The average police officer earns $37,440 annually in Georgia.

https://yourpolicecareer.com/how-to-become-a-police-officer-in-ga/

AFP GEORGIA: STOP THE HANDOUTS 6

HOUSE BILL 155
6

TAX CREDIT
FOR MUSIC
INDUSTRY
Taxpayer-funded handouts
Businesses should succeed or fail based on their meritsnot on the
preferences of politicians. With this bill, our state government will
reward certain businesses in the music industry with taxpayer-funded
handoutsto the tune of $50.3 million7 over five years.

WE OPPOSED
Government shouldnt pick winners and losers.
Businesses and industries should succeed or fail based
on their meritnot on the preferences of politicians.

FOR $50 MILLION, WE COULD

BUILD A NEW HIGH SCHOOL FOR
1,200 STUDENTS.*

*Average Elementary School: $12 million; Average Middle School: $22 million; Average High School:

AFP GEORGIA: STOP THE HANDOUTS 7

HOUSE BILL 196
8

SPECIAL
TREATMENT
FOR MUSICIANS
Favoritism
We dont exempt plumbers, nurses, teachers or firefighters from paying
income taxes. So why should musicians be shown favoritism? This bill*
would exempt musicians royalties from state income taxes, with an
estimated cost of more than $4 million per year9.

*
H.B. 196 passed and was signed into law, but the Senate rightfully removed this special-interest provision

WE OPPOSED
You have to pay your income taxes, so why shouldnt
musicians have to pay tax on their income, as well? We
oppose legislation that gives preferential treatment to
one group of people at the expense of another.

$4 MILLION WOULD HIRE

75 TEACHERS PER YEAR.*
*Average teacher salary: $52,880
Average starting salary: $33,664
https://articles.niche.com/teacher-salaries-in-america/

AFP GEORGIA: STOP THE HANDOUTS 8

HOUSE BILL 199
10

TAX CREDIT FOR

VIDEO GAME
COMPANIES
Rigging the game
Talk about rigging the gamethis bill amounts to a massive handout for
video game creators. With an estimated cost of $82.5 million11 over the
next five years, lawmakers are not playing around with this piece
of legislation.

WE OPPOSED
This bill gives tax credits to video game creators.
We oppose special interest carve outs in the tax code.

$82.5 MILLION WOULD PAVE 129

MILES OF ROADS & HIGHWAYS
THROUGHOUT THE STATE.*

Average coster per mile of paved road: $64,910

*

Average maintenance and upkeep cost per mile of road: $15,361 (Could renovate 1,301.9 miles)
http://reason.org/files/22nd_annual_highway_report.pdf

AFP GEORGIA: STOP THE HANDOUTS 9

LEGISLATIVE
SCORECARD
Special Interest Handouts
The following pages show how Georgia state legislators voted on these
four bills. A checkmark means they stood with Georgia taxpayers by
opposing the bill. A red X means that they voted for the special-interest
tax handout.

DEMAND BETTER FROM

YOUR LEGISLATORS
Sign the online petition and inform your Senator
and Representative that you want these handouts
to end!

STOPTHEHANDOUTS.COM

AFP GEORGIA: STOP THE HANDOUTS 10

By DXR (Own work) CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons
HOLDING THEM | Senators
ACCOUNTABLE

5 5 9 5 5 9
12 15 19 12 15 19
B B B B B B
H H H H H H

John Albers Harold Jones II

Lee Anderson John Kennedy
Tonya Anderson Greg Kirk
Brandon Beach William Ligon
Ellis Black David Lucas
Matt Brass P.K. Martin
Dean Burke Josh McKoon
Gloria Butler Fran Millar
Bill Cowsert Butch Miller
Gail Davenport Jeff Mullis
Mike Dugan Nan Orrock
Vincent Fort Elena Parent
Frank Ginn Chuck Payne
Steve Gooch Michael Rhett
Marty Harbin Valencia Seay
Ed Harbison David Shafer
Tyler Harper Freddie Sims
Bill Heath Jesse Stone
Steve Henson Horacena Tate
Hunter Hill Bruce Thompson
Jack Hill Curt Thompson
Judson Hill Blake Tillery
Chuck Hufstetler Lindsey Tippins
Lester Jackson Renee Unterman
Donzella James Larry Walker III
Rick Jeffares Ben Watson
Burt Jones John Wilkinson
Emanuel Jones Michael Williams

AFP GEORGIA: STOP THE HANDOUTS 11

HOLDING THEM | House of Representatives
ACCOUNTABLE

5 5 6 9 5 5 6 9
12 15 19 19 12 15 19 19
B B B B B B B B
H H H H H H H H

Stacey Abrams Doreen Carter

Kim Alexander David Casas
Mandi Ballinger Joyce Chandler
Tim Barr David Clark
Paul Battles Heath Clark
Debra Bazemore Brooks Coleman
Sharon Beasley-Teague J. Collins
Dave Belton Kevin Cooke
Karen Bennett Christain Coomer
Patty Bentley Sharon Cooper
Tommy Benton John Corbett
Beth Beskin Clay Cox
James Beverly John Deffenbaugh
Shaw Blackmon Katie Dempsey
William Boddie Pam Dickerson
Josh Bonner Robert Dickey
Bruce Broadrick Matt Dollar
Buzz Brockway Demetrius Douglas
Roger Bruce Karla Drenner
Debbie Buckner David Dreyer
Rhonda Burnough Matt Dubnik
Jon Burns Winfred Dukes
Michael Caldwell Emory Dunahoo
Johnnie Caldwell Geoff Duncan
Park Cannon Darrel Bush Ealum
Wes Cantrell Chuck Efstration
John Carson Earl Ehrhart
Amy Carter Terry England

AFP GEORGIA: STOP THE HANDOUTS 12

 5 5 6 9 5 5 6 9
12 15 19 19 12 15 19 19
B B B B B B B B
H H H H H H H H

Bubber Epps Henry Howard

Stacey Evans Carolyn Hugley
Barry Fleming Derrick Jackson
Gloria Fraizer Mack Jackson
Spencer Frye Rick Jasperse
Pat Gardner Jan Jones
Dan Gasaway Jeff Jones
Carl Wayne Gilliard Sheila Jones
Sheri Gilligan Todd Jones
Mike Glanton Vernon Jones
Rich Golick Trey Kelley
Craig Gordon Darshun Kendrick
Micah Gravley Tom Kirby
Gerald Greene David Knight
Matt Gurtler Dominic LaRiccia
Meagan Hanson Brenda Lopez
Buddy Harden Jodi Lott
Brett Harrell Eddie Lumsden
Matt Hatchett Pedro Marin
Lee Hawkins Chuck Martin
Michele Henson Karen Mathiak
Dewayne Hill Howard Maxwell
Scott Hilton Tom McCall
Bill Hitchens Dewey McClain
Don Hogan Bill McGowan
Scott Holcomb John Meadows
Susan Holmes Marie Metze
Penny Houston Billy Mitchell

AFP GEORGIA: STOP THE HANDOUTS 13

 5 5 6 9 5 5 6 9
12 15 19 19 12 15 19 19
B B B B B B B B
H H H H H H H H

Greg Morris Jason Shaw

Howard Mosby Deborah Silcox
Sheila Clark Nelson Michael Smith
Mark Newton Lynn Smith
Chad Nimmer Richard Smith
Randy Nix Calvin Smyre
Mary Oliver Jason Spencer
Miriam Paris Ron Stephens
Sam Park Mickey Stephens
Butch Parrish Pam Stephenson
Don Parsons Valencia Stovall
Allen Peake David Stover
Jesse Petrea Brian Strickland
John Pezold Jan Tankersley
Clay Pirkle Kevin Tanner
Alan Powell Steve Tarvin
Jay Powell Darlene Taylor
Betty Price Tom Taylor
Brian Prince Sam Teasley
Jimmy Pruett Erica Thomas
Regina Quick Mable Thomas
Brad Raffensperger Robert Trammell
Paulette Rakestraw Scot Turner
David Ralston Keisha Waites
Bert Reeves Sam Watson
Trey Rhodes Andrew Welch
Jason Ridley Bill Werkheiser
Terry Rogers David Wilkerson
Dale Rutledge Wendall Willard
Ed Rynders Coach Williams
Sandra Scott Chuck Williams
Ed Setzler Rick Williams
Renitta Shannon Al Williams
Dexter Sharper Bruce Williamson

AFP GEORGIA: STOP THE HANDOUTS 14

CITATIONS 1. Scarboro, Morgan. State Individual Income Tax Rates and Brackets
2017. Tax Foundation. 9 Mar. 2017, taxfoundation.org/state-
individual-income-tax-rates-brackets-2017/.
2. Tharpe, Wesley. Overview of Georgias 2018 Fiscal Year Budget.
Georgia Budget & Policy Institute. 25 Jan. 2017, https://gbpi.
org/2017/overview-georgias-2018-fiscal-year-budget/.
3. Tharpe, Wesley. Legislators Approve Isolated Tax Breaks, Defer
Broad Tax Changes. Georgia Budget & Policy Institute. 12 April
2017, https://gbpi.org/2017/legislators-approve-isolated-tax-breaks-
defer-broad-tax-changes/.
4. Georgia House of Representatives, 20172018 Regular Session.
House Bill 125. http://www.legis.ga.gov/legislation/en-US/
Display/20172018/HB/125.
5. See Citation #3.
6. Georgia House of Representatives, 20172018 Regular Session.
House Bill 155, Georgia Musical Investment Act. http://www.legis.
ga.gov/legislation/en-US/Display/20172018/HB/155.
7. See Citation #3.
8. Georgia House of Representatives, 20172018 Regular Session.
House Bill 196. http://www.legis.ga.gov/Legislation/en-US/
InjectSession.aspx?BillType=HB&BillNum=196.
9. Tharpe, Wesley. Lawmakers Debating Big Bucks After Several Tax
Bills Pass House. Georgia Budget & Policy Institute. 14 Mar. 2017,
https://gbpi.org/wp-content/uploads/2017/03/2017-Adding-Up-
Fiscal-Notes.pdf.
10. Georgia House of Representatives, 20172018 Regular Session.
House Bill 199. http://www.legis.ga.gov/legislation/en-US/
Display/20172018/HB/199.
11. See Citation #3.

AFP GEORGIA: STOP THE HANDOUTS 15

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