The Augusta Courier

GEORGIA'S INCOME TAX LAW
By W. A. LUFBURROW

Georgia collected approximately $29,000,000.00 in income taxes from individuals, corporations and fiduciaries for the fiscal year, July 1, 1947 - June 30, 1948. The amount collected for the fiscal year July 1, 1948 - June 30, 1949 was not available at the time this is written. For the year 1947 the Federal Government collected $223,605,402.01 in income taxes from individuals and $108,108,423.83 in income taxes and profit taxes from corporations in Georgia.

There were 146,614 individuals who paid income taxes to the State of Georgia for the fiscal year 1947-1948. The Federal Government reports 740,820 individuals in Georgia paid income taxes to it from January 1, 1949 through June 30, 1949. (There was very little difference in the number of individuals in Georgia paying income taxes to the Federal Government for the taxable years 1948 and 1949.) The difference in the number of individuals in Georgia paying income taxes to the Federal Government at the above mentioned time and those paying income taxes to the state the fiscal year 1947-1948 was 594,206. The number of individuals paying income taxes to the state and the amount collected for the fiscal year 1948-1949 was not available at the time this survey was made; but it is understood there will not be a marked difference in the 1947-1948 and the previous year. One reason for the great difference in the number of Georgians paying income taxes to the Federal Government and to the State Government is that the Federal Government has such low exemptions that its income tax law is a virtual dragnet, while Georgia's income tax law has higher exemptions which are in keeping with a decent standard of living.

Georgia's income tax law affecting corporations is the highest of any state income tax in the Union. The recent increase of 2 per cent on corporations was unwise and unfair to businesses of this classification in the State, and is a means of keeping outside capital from coming into Georgia. The 2 per cent levy imposed at the special session of the legislature the past summer ought to be repealed in January 1950. While Georgia is a fine place to live, it is not such a great place to live and to do business in that corporate capital would come here in preference to Florida, Alabama, Tennessee and other states which do not single out corporations for the imposition of excessive taxes.

It is of historical interest to note that the Georgia Legislature enacted an income tax law in 1864, which is reported in Georgia Laws 1864-1865, Page 65. The caption of this law provides:

"An act to levy and collect tax on the net income or profits of all persons engaged in agriculture and farming, and net profits of all persons making incomes by purchase and sale of any property, real or personal; upon net income of all express companies; railroad companies not exempt by their charter from such taxation; insurance companies, brokers, auctioneers; on persons engaged in the manufacture of iron and salt, and cotton dealers; on persons engaged in the manufacture of flour, meal, grits and hominy; and upon all profits arising from the sale of goods, wares and merchandise, groceries and provisions; also, on the income or profits of all persons and bodies corporate, engaged in the manufacture of cotton or woolen goods; in the tanning and sale of leather and the manufacture and sale of any articles made thereof; in the distillation and sale of alcohol or spirituous liquors; on cotton dealers; on persons engaged in the manufacture of wooden ware, and to punish all persons who may fail to give in their income or net profits and for other purposes."