Georgia is the State for Business
12/8/2009

Georgia is open for business and will remain that way as long as we don’t raise taxes. During times of economic downturns and declining revenues, you will hear a variety of suggestions on how to turn around the economy. These suggestions can be as reasonable as tax incentives for job growth or as outlandish as raising taxes on struggling businesses and families. Raising taxes in Georgia is not an option. Georgia is poised for an economic turn-around utilizing free-market principles Cobb County is ready.

The state recently announced Marietta’s designation as an Enterprise Zone, which will encourage new businesses to locate in the city or encourage existing businesses to expand. Qualifying businesses locating or expanding within the Zone are eligible for certain tax incentives and other economic development incentives for job creation and capital investment in the community. When two or more jobs are created, these businesses may be eligible to receive $3,500 in employee tax credits for each new job. While the zones focus primarily on the commercial and retail sectors, these small business areas are key to stabilizing the economy.

Companies also want to locate where taxes are low. Georgia has one of the lowest corporate income tax rates, ranking 42nd in the nation according to Georgia State University’s Fiscal Research Center. Georgia also ranks 35th in the nation on total per person tax burden, making jobs more attractive. By maintaining these low taxes, Georgia is attracting companies, growing jobs and turning around our economy. Kennesaw has already witnessed some of this growth with the addition of small businesses such as ExiGlo, a company that uses renewable energy for electric signs. Over the next five years, our state should see growth of more than 22,000 jobs and investments of over $560 million from companies relocating to Georgia. For example:

• Mitsubishi Power Systems (Savannah) = 500 jobs and $325 million
• Belgian flooring manufacturer IVC Group = 115 jobs and $70 million. This will be the company’s first U.S. plant and will be located in Dalton, GA.
• Cancer Treatment Centers of America (Newnan) cancer treatment hospital = 500 jobs and $150 million
• Chicken of the Sea International domestic canning operation (Lyons) = 200 jobs and $20 million.
• Fortune 500 processing firm First Data Corp. plans to relocate its global headquarters to Atlanta = 1,000 employees over the next three years.

The new Kia plant in West Point built its first U.S. manufacturing plant at a cost of $1 billion and brought 1,200 much-needed jobs to the region and state. In addition, auto parts suppliers added approximately 3,000 jobs. Georgia Tech estimates that this plant will bring nearly 20,000 new jobs by 2012.

Businesses are not the only ones who have noticed that Georgia is a business and job friendly state. In its annual grading of state business climates, cable-network CNBC gave Georgia high scores in the cost of living and business friendly categories. Georgia’s overall ranking in the “2009 Cost of Doing Business” survey was 10th in the nation. Governing Magazine named Georgia one of the best managed states in the U.S. Our state received high scores in managing for performance, the budget process and project monitoring. Georgia’s spending per capita ranks among the lowest in the nation.

Stimulus dollars and government bailouts are not bringing companies and jobs to Georgia. Growing the private sector and getting Georgians back to work is the only formula for economic success. We must keep taxes, the cost of doing business, and regulatory burdens low. Georgia is on the brink of substantial job growth and company investment. Let’s not scare them away by raising taxes.