Roy Barnes' Economic Plan: Rob Peter (501 C3) to Pay Paul (Business)

Georgia democratic gubernatorial candidate Roy Barnes has a plan. Roy wants to rob from the poor to give to the rich. And like Roy's plans when he was governor in Georgia from 1999 to 2003, Barnes isn't asking citizens' opinion about it.

Barnes wants to eliminate Georgia Sales Tax Exemption (501 c3)

Barnes said that if he is elected governor this year in November, he will eliminate the current Georgia Sales Tax Exemption status, as well as other state tax breaks, according to the AJC.

Roy's opponent Nathan Deal said he would not be making any changes to the state tax codes if he is elected. He would not make changes until the designated tax commission established by Georgia's legislature has submitted its study recommendations to the new governor in January of 2011.

Roy Barnes' plan to eliminate the 501 (c3) tax benefits isn't without a cost, which would be borne by hospitals, schools, churches and other not-for-profit 501 (c3) institutions throughout the state.

501 (c3) organizations robbed in Barnes plan

Currently, 501 (c3) organizations like your local public school do not have to pay sales tax on certain purchases. This is a win-win situation, as the school reduces its overall budget, which, in turn, reduces taxpayer overall cost.

Barnes wants to do away with the 501 (c3) discount enjoyed by the school system, the hospitals, and the other not-for-profit organizations. He wants those funds collected and redistributed to someone else.

Barnes wants to pull an Obama: redistribute money. He also wants the monies from the elimination of other tax breaks, which he didn't identify by name, to be parlayed along with the 501 funds in order to provide him with a total of $300 million to give to businesses.

Georgia Sales Tax Exemption: Already offering businesses incentives

Why would the potential governor want to rob Peter (501 c3) to pay Paul (big business)?

He wants Georgia businesses to "expand" and create new jobs, he says.

But here's the rub: Existing Georgia businesses already enjoy incentives for expansion. And, they do so through--can you believe it?-through the very entity he wants to do away with: the Georgia Sales Tax Exemption. So they could already expand and create jobs.

Georgia Sales Tax Exemption and Businesses

Warehouses and distribution centers in Georgia already enjoy sales tax exemption if they spend money in expansion efforts. In addition, Georgia manufacturers already enjoy tax exemptions for producing certain goods and services, as well as replacing or purchasing new equipment.

So Georgia already rewards and motivates businesses in the state to expand, offering them incentives that enable them to spend that saved money on job creation and additional expansion.

Barnes basically wants to take away the discount enjoyed by the not-for-profit Georgia organizations in order to allow businesses in the state to "double dip," if you will. He wants to reward them for not doing what they could have been doing all along.

Barnes' Plan: How Barnes' decision impacts my family and yours

If Roy's plan went into action it would impact all hospital bills. The hospital would no longer be getting the discount for all those medical supplies they purchase, so they would have to tack that on to my bill and yours, and they would have to reduce indigent care for the unemployed and uninsured in our state, too.

Schools would be affected by Roy's decision. They would have to start paying tax on all supplies, reducing overall school budgeting funds.

As a former educational employee in Georgia, I know first-hand how costly it is for schools to purchase needed school supplies each year. You would learn first-hand how costly it is too, as you and other taxpayers would have to pick up the tab, enabling Barnes to give that money to businesses that operate for profit, instead.

My church and others, as well as organizations like the Salvation Army, provide needed services for free. They donate food items and financially assist the unemployed in Georgia. Denying them 501 (c3) sales tax exemption benefits will increase their costs, reducing their aid to others.

Roy Barnes is again trying to dictate what he will do, and it isn't a good plan.

Sources:

"Roy Barnes pitches tax breaks for job-creators; Nathan Deal says defer taxes for new start-ups," AJC.com