Georgia’s Kemp seeks tax breaks, rebutting Abrams on economy

Aug 10, 2022, 10:43 PM | Updated: Aug 11, 2022, 10:12 pm

ATLANTA (AP) — Georgia GOP Gov. Brian Kemp unfurled the first major policy proposals of his reelection bid Thursday, pledging to spend $2 billion on another state income tax rebate and revival of a long-dormant state property tax break while contending with Democratic challenger Stacey Abrams over who’s best for the state’s economy.

After Abrams argued this week that “miserly” Republicans are denying basic services and ignoring inequities in pursuit of low spending and tax cuts for the rich, Kemp renewed criticism of Abrams, again trying to tie her to the unpopularity of Democratic President Joe Biden.

“Abrams plans to spend more, tax more, regulate more,” Kemp said Thursday, “all while driving inflation higher and putting countless livelihoods at risk, just like her pal in the White House.”

Abrams already called for another round of income tax rebates. She’s also called on Kemp to suspend the gas tax through the end of 2022, and has pledged to not try to roll back the income tax cut, even though she criticizes benefits to the wealthy.

“While Brian Kemp is following Stacey Abrams’ lead in calling for tax rebates, he’s still pushing an extreme and dangerous agenda that threatens Georgia families and puts our economy at risk,” said Abrams spokesperson Alex Floyd, citing restrictive abortion laws and loose gun laws.

Kemp is sticking to the script Georgia Republicans have followed in 20 years in power. He said Thursday that if voters reelect him, he will seek a second round of income tax rebates like the $1.1 billion in payments issued this year, according to a Kemp campaign official with knowledge of plans who spoke on condition of anonymity. This year’s payments gave dual-earner households $500, single adults with dependents $375, and single adults $250.

The governor also will seek to revive a property tax break that succumbed in 2009 amid the state budget crisis caused by the Great Recession, the official said in previewing Kemp’s announcement. That tax break, first created by Democrat Roy Barnes in 1999, cost the state $428 million in 2008, saving homeowners $200 to $300 on tax bills. Kemp wants to go bigger, spending a billion to save what he says will be about $500 a year for taxpayers with homestead exemptions.

With property values rising, most taxpayers will see higher property tax bills this year because local governments and school districts did not reduce tax rates enough to hold tax bills level.

“For young Georgians just getting settled into their first home or parents who are sending their kids off to college, unforeseen jumps in property values and local tax bills over the last year only add to concerns of an uncertain economic future,” Kemp said.

Kemp can hand out cash because Georgia’s coffers are fat. The state ran a roughly $5 billion surplus in the year ended June 30, with more than $2 billion in surplus still banked from the year before.

The governor has also repeatedly renewed a gas tax break over five months. His administration plans to draw from the surplus to channel money to roadbuilding in place of what’s already $750 million in foregone fuel taxes. Kemp also signed a state income tax cut that begins in 2024 and could eventually reduce taxes by more than $2 billion.

Kemp accuses Abrams of backing his policies only because they’re popular.

“She criticized all those things before she came out and is now supporting them,” Kemp told reporters Wednesday.

Abrams slammed the property tax break in a speech Tuesday, calling it “paying off the property taxes of mansion owners and millionaires.” The Census Bureau says 66% of Georgians own homes, but Abrams focuses on housing affordability and the Kemp administration’s stuttering payout of federal COVID-19 relief to renters.

Abrams argues many, especially in rural Georgia, are missing out. She notes Georgia’s income rankings have fallen during two decades of Republican rule.

“Most Georgia families are doing everything right,” Abrams said Tuesday, arguing for more state investment in education and health care to boost everyone. “They work full-time jobs. They’re putting a little away when they can despite rising prices. Yet middle class families are struggling.”

Kemp used the power of incumbency to stomp Republican challenger David Perdue, delivering benefits and legislative accomplishments before the May primary. But he would have to wait until after any reelection for legislative approval of his new plans, barring an election-season special session. He was flanked Thursday by House Speaker David Ralston and Republican lieutenant governor candidate Burt Jones in support of his plans.

The governor would be building off Georgia’s record $21.2 billion in state-incentivized business investments last year, with companies committing to create 51,000 jobs. Georgia also has a record-low unemployment rate.

Kemp argues only Democrats are to blame for economic instability, saying Abrams deserves blame for helping get Biden elected.

“Hardworking Georgians are now faced with a Democrat-controlled Washington D.C. that is hellbent on driving 40-year high inflation even higher, and doing everything they can to make your life harder,” Kemp said. “The pain Georgians are feeling at the pump, and at the grocery store, is a direct result of these tax and spend policies pushed by Joe Biden and Stacey Abrams.”

___

Follow Jeff Amy at http://twitter.com/jeffamy.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
5 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
13 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
13 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
20 days ago
A young bison calf stands in a pond with its herd at Bull Hollow, Okla., on Sept. 27, 2022. The cal...
Associated Press

US aims to restore bison herds to Native American lands after near extinction

U.S. officials will work to restore more large bison herds to Native American lands under a Friday order from Interior Secretary Deb Haaland.
20 days ago
Children play in a dried riverbed in Flassans-sur-Issole, southern France, Wednesday, March 1, 2023...
Associated Press

Italy, France confront 2nd year of western Europe drought

ROME (AP) — Bracing for Italy’s second consecutive year of drought for the first time in decades, Premier Giorgia Meloni huddled with ministers Wednesday to start mapping out an action plan Wednesday, joining France and other nations in western Europe grappling with scant winter rain and snow. Meloni and her ministers decided to appoint an […]
22 days ago

Sponsored Articles

(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
...
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Georgia’s Kemp seeks tax breaks, rebutting Abrams on economy