Yes, indeed, it is a privilege to do business in Georgia. I am not speaking from the eyes of the business owner who is grateful of where he has chosen to open his business. Instead I am speaking of how government views you and your business enterprise.
And as it is such a privilege, the State of Georgia taxes you for that privilege.
Senate Bill 133 brought that to my attention as they are attempting to remove this tax for businesses of a certain size. It will still be a privilege to have a business, for that language will not be removed, but some businesses will be exempt.
Imagine that. Once again we have government picking the winners and losers. Something they really should not be doing.
From Section Two of the Bill:
“In addition to all other taxes imposed by law, there is imposed an annual corporate net worth tax on all corporations incorporated under the laws of this state, all domesticated foreign corporations, and all corporations incorporated or organized under the laws of any other state, territory, or nation doing business or owning property in this state for the
privilege of carrying on a business within this state in the corporate form, except as otherwise provided in Code Section 48-13-71.”
The dollar amounts of the tax are not that much( taxes like this never are). It’s just a little something extra that the State can get from every business that is a nuisance, but is not worth having businesses get together and fight for total repeal.
Think about the fact that it is a Net Worth Tax.
An individual or company’s assets minus liabilities, in which assets exceed liabilities. For example, if a company has $3 million in assets and $1 million in debt and other liabilities, it has a net worth of $2 million.
financial-dictionary.thefreedictionary.com/Net+worth
Retained earnings are part of a company’s assets. Those earnings are already taxed. Here we have a tax on monies left over after taxes.
It’s outrageous the State of Georgia believes it is ok keep on squeezing the very same businesses that are providing jobs and growth in Georgia.
Finally, this tax is ultimately paid by YOU. All business taxes will be incorporated into the goods and services that they sell. So in the end, it is you that pay this tax.
If you feel you are not paying enough taxes already, then this type of taxation will not bother you.
None of us, truly can even come close to determining just how much tax we actually pay or who it goes to. With so many hidden and embedded taxes, it’s impossible to tell.
And unfortunately, our elected officials also know this. Which is why they will continue to squeeze us as long as they believe there is some juice left.
Contact your state senator and ask them to eliminate the Corporate Net Worth Tax for all businesses, not just those with a net worth below a certain threshold.
It’s the right thing to do. The more real profit a company has, the more jobs it will create going forward. The endless number or ways in which a business is taxed may seem like a small price to pay, but it adds up to big dollars, and is slowly sucking the growth out of our economy.
