"We certainly believe we could lessen the tax burden on all of our citizens, if we collect a larger percentage of legitimate taxes due," a special House committee on tax reform concluded in its final report.

The tax reform committee recommended, among other things, that efforts to enforce tax law in general be increased and an attempt made to assure the state receives all the sales taxes it should from businesses.

Currently, some Georgia employers fail to remit employee income taxes they withhold, and individuals and businesses don't always pay what they owe. Too many businesses improperly keep sales tax revenue for themselves instead of remitting it to the state.

At the end of last year, the Department of Revenue counted more than $300 million in withholding taxes that had not been forwarded to the state. About $500 million in personal income taxes were delinquent, as well as $275 million in sales taxes and more than $60 million in corporate income taxes.

Under House Bill 385, the state Department of Revenue would be given additional tools to collect that revenue and combat tax fraud.

For example, HB 385 would expand the department's limited law enforcement authority to include the power of arrest. In a state in which criminal prosecution of tax fraud is almost unheard of, that might discourage some potential cheaters.

Other provisions in the bill would permit the Department of Revenue to fine income tax preparers who defraud the state, and to sue to put them out of business.

It should not have been a difficult decision for the House to have passed that bill and sent it to the state Senate. The measure would have strengthened the current tax system while doing nothing to complicate its overhaul. Instead, the legislation stalled after approval by the Ways and Means Committee.

—- David McNaughton, for the editorial board ( This e-mail address is being protected from spam bots, you need JavaScript enabled to view it )

Discuss this article on the forums. (0 posts)