Responses by Virgil Fludd, incumbent representative, Ga. House District 66 (Democratic Primary)

Tue, 07/01/2008 - 8:40pm
By: Virgil Fludd

1. What would you do as a legislator to respond to the growing energy crisis? What will you do to specifically address the plight of families in Georgia as pocketbooks are being stretched to pay for gas, groceries and utility bills?

The energy crisis is a local, state and federal issue. At the state level we can institute a number of programs including:

- Conservation. Clearly the less energy we use, the lower our energy costs and the more we will have available for future use.

- Alternative fuels. The state can offer additional tax incentives for investments in alternative fuel sources like bio fuels. We have a significant amount of waste (including wood products) that can be used to create green energy

- Mass transit. We must get more cars off our roads, especially in the metro areas

- Work at home programs. Allowing employees to work from home will conserve energy and cut down on traffic congestion, commute times and pollution.

To address the growing pocketbook concerns, we can do the following:

- Offer more incentives for businesses (especially small ones) to create more jobs

- Update our state income tax laws to reduce the tax rates and at the same time adjust the standard and itemized deductions to match the federal level

- Reintroduce a bill I authored last session that would allow people on unemployment to continue to receive those benefits as they were attempting to start their own business

- Set a moratorium on utility rate increases

2. Georgia consistently ranks near the bottom in education excellence nationwide. What will you do to correct that problem?

I propose several options to help us with improving our performance in education. For teachers:

- Higher pay. We must be able to attract and retain the best and the brightest to this profession.

- Peer mentoring and career development

- Pay for performance

- Reduce paperwork burdens from unfunded mandates

Student achievement

- Focus on keeping kids in school by raising the age at which a student can drop out to 17

- Update the curriculum and teaching methodologies to reflect the learning styles of today’s children

- Require parental involvement in schools

- Emphasize learning over teaching to the tests

3. Do Georgia taxpayers pay too little in taxes, about the right amount or too much in taxes? What specifically will you do and what bills will you author to help state taxpayers?

Georgia ranks 43rd in state taxes as a percent of personal income, and 40th in state and local taxes, according to the most recent Census figures. The big issue is around the increase in taxes, especially property tax. Last session, I introduced a bill that was a comprehensive tax reform measure. HB proposed several sound policy options.

- Require tax expenditure report

This report would provide data and evaluation on the full and true costs of tax exemptions. The Georgia Budget and Policy Institute consistently calls for an annual tax expenditure report, which would provide data and evaluation on the full cost of these exemptions. GBPI is not alone in this recommendation. The Department of Audits’ recent analysis of corporate income tax credits recommended a tax expenditure report as their number one recommendation to the Governor and the General Assembly.

- Income Tax Reform

1) Broaden the state income tax brackets

Georgia’s income tax brackets have not changed significantly since the 1930s, a time when $10,000 of income was a decent living. The tax brackets are narrow and the top tax rate of 6 percent begins at $7,000 of taxable income for single filers and $10,000 for married filing jointly. Today’s incomes are much higher than in the 1930’s and should be taxed through a modern income tax structure.

2) increase personal exemptions and standard deductions

Georgia’s income tax structure does not account for inflation (i.e. the rising cost of goods and services). Thus, every year, aspects of the tax system, such as personal exemptions and standard deductions, fail to keep pace with the economy. Georgia could fix this problem, which can cause hidden tax increases, by indexing components of the income tax system to inflation. Georgia could link components such as standard deductions and personal exemptions to the inflation-adjusted federal income tax system, and thus account for inflation automatically.

Reduction of $380 mm in revenue. 95% of Georgia wage earners would see a decrease in their state income tax.

- 3.5% circuit breaker on property tax (with $45k income limit)

Georgia has low property taxes relative to the rest of the nation (35th) and ranks in the middle of its neighbors for both property taxes per capita and as a percent of personal income. Currently, property taxes are tied to property values, rather than income or ability-to-pay. Circuit breakers provide property tax assistance by ensuring property taxes do not exceed a homeowner’s or renter’s ability-to-pay.

Set the circuit breaker at 3.5 percent of income, so a portion of the taxpayer’s property tax payment will be refunded when it exceeds 3.5 percent of the person’s income set at $45,000 per year or less. Although property taxes are primarily a local tax, the state pays for the circuit breaker program by refunding the excessive tax payment through the income tax system.

Reduction of $464 mm in revenue. This would be targeted to lowest income Georgians.

- Eliminate inventory tax

Georgia is the only state in the southeast and one of only fourteen or so that continues to levy an ad valorem tax on inventory.

Minimal fiscal impact ($200 million to local governments)

- Eliminate 50% of vehicle tag tax and state reimburses local government

Reducing or eliminating the tax on motor vehicles will decrease the local property tax bill of state residents in a visible and straightforward manner.

Reduction of $311 mm in revenue

- Exempt energy used in manufacturing

To compete in the region, Georgia should eliminate the sales tax on energy used in manufacturing.

Reduction of $160 mm in revenue

- Improve Government efficiency.

It is estimated that the Georgia Department of Revenue fails to collect as much as 20% of the sales taxes that are paid to retailers across the state. By improving its collections processes (including using an outside collecting function) the state could gain a significant amount of revenue. With $6 billion in sales tax revenue, DOR could be missing as much as $1.2 billion (20% of $6,000,000,000). The state would gain $600 million in revenue by improving its collections by 50%

Additional $600 mm in revenue

- Increase cigarette tax by $1 per pack (Cigars and other tobacco products would increase also)

Georgia raised its cigarette tax to 37 cents per pack in 2001, yet continues to have the 11th lowest cigarette taxes in the nation. Cigarette taxes are regressive (the poor pay more of their income in cigarette taxes), and thus are not a good tax to increase fairness. Also, cigarette taxes are a declining revenue source (smoking rates are decreasing), and thus are not a good tax to fund core government programs, which increase in cost. While not the best tool in terms of tax policy, cigarette taxes do provide healthcare gains in terms of lower smoking rates and subsequent long-term health cost savings.

Additional $515 mm in revenue??

- Apply sales tax on selected services

Americans are buying more and more services, but our out-dated sales tax remains focused on goods. Georgia taxed 36 out of 168 possible services in 2004. The national average was 57.

As more purchases go towards services, the sales tax base continues to erode. Georgia could strengthen its sales tax by expanding the tax base to include more services. Including these household services in the sales tax base would improve fairness by removing the current tax bias against those who purchase more goods than services.

Exclude services such as healthcare, housing, education, legal, banking, public transit, insurance and financial services; there are 40 services that are purchased predominately by households.

Out of these 40 household services, Georgia already taxes 11 services (residential electricity, residential gas, diaper service, tuxedo rental, pari-mutuel racing admissions, amusement park admissions, bowling alleys, circus/fair admissions, cultural event admissions, professional sports admissions;

Additional services that would be taxed: accounting fees, home improvements, towing charges, docking/landing fees, interstate long distance phone, motor vehicle maintenance/repair, cable, club membership and dues, etc.

Additional $500 mm in revenue

4. What makes you the right person to serve the people of Fayette County?

I am caring, committed and capable. I am proud to have served Fulton and Fayette Counties over the past 6 years representing the 66th District in the General Assembly. I have been married to my wife Carolyn for 24 years and we have 2 college students both of whom graduated from Fayette County public school.

I don’t Care just because I’m an elected official; I’m elected because I do care. I care about this community, I care about the environment, our students, our seniors and our working adults.

A couple years ago when the PSC facility had a chemical spill, I was instrumental in bringing the appropriate parties to the table – community leaders as well as local, state and federal officials. And right now, I am actively supporting a group of citizens in South Fulton whose homes have been impacted by a nearby rock quarry.

I have been involved with a number of initiatives to bring new jobs to this community by working closely with the area chambers of commerce and development authorities. I strongly support the Tri-County Alliance (Fulton, Fayette and Coweta) and its goals to address transportation issues along I-85.

Most importantly, I care about our future. As a result, I started a foundation recently and we have given almost $10,000 to students from the district going to college.

I’m Capable. I have been able to get legislation introduced and passed into law because I have worked with my colleagues on both sides of the aisle. As a result we have gotten funding for Promise Place and over $1 million for a new library in Tyrone.

I have taken on the tough issues like predatory lending, transportation, environmental protection, education, tax reform and healthcare.

My work in the legislature has been recognized by the AARP, GA Conservation Voters, the Sierra Club, GA Equality, UAW, SEIU, AFL-CIO and GAE. I have experience running a business and have served the people of the 66th district ably for the past 6 years.

And finally, I am committed to service. For all of my adult life, I have been involved in community or public service. This is not a new road for me; I’ve been on this path for a long time.

5. What is your legislative position on SB 458, charter schools in general and the Clayton County school situation in particular?

I support charter schools but had problems with some of the details of SB 458. The state and Clayton County officials should do everything possible to ensure that the students get the best education they can.

6. Would you vote for or against a switch to district voting for the Fayette County Commission? Why or why not?

I am for district voting. I believe that each of us is entitled to the proposition of “one person, one vote.” When one area of the county (east, west, north or south) can not determine who should represent it, then that system is flawed.

When we were a small population (less than say 50,000), at-large voter is probably more appropriate. We are now over 100,000 and growing more diverse in many respects.

I believe that a combination of 3 district Commissioners and 2 at-large Commissioners would more than adequately serve the citizens of Fayette County.

In the 2008 session, I introduced a number of bills — district voting was just one. The others were:

- The Self Employment Act which will allow unemployed persons to continue to receive unemployment benefits while they purse entrepreneurial opportunities (HB 1114)

- a bill to strengthen the enforcement powers of the EPD (HB 965)

- a BETTER Plan – real tax reform (HB 1264)

- a bill to give owners of mobile homes in mobile home parks more flexibility when the parks are sold or converted (HB 1258)

- a bill to require non-partisan election of judges in Fayette (HB 1058)

- tire disposal provisions (HB 952)

- re-charter the Town of Tyrone (HB 1448)

7. Mass transit (especially MARTA) into Fayette is opposed by many Fayette voters. What’s your position and why? Address the concerns of increased crime coming with mass transit.

We will only be able to conserve to a limited expense. Mass transit in some form or another is one of several options that must be considered to help stem the growing use and expense of gas and our dependence on foreign oil.

I would like to see the statistics around the correlation between mass transit and crime. I don’t believe that the two are absolutely linked. I have never seen some one on a train or a bus carrying a stolen television.

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[FOR FLUDD]

1. Were you not late on responding to citizen concerns about the toxic onion-odor in south Fulton and north Fayette counties? What would you do differently next time?

The PSC incident in 2006 was tragic to say the least. As soon as the issue was brought to my attention, I responded immediately. That being said, I think we can all learn from terrible incidents like the one at the PSC facility.

I got engaged early and was very active in bringing together the stakeholders (community leaders, local, state and federal officials) to address the issue.

While none of us could have predicted the magnitude of this chemical spill, the next time any environmental incident occurs will certainly draw a more urgent response from all public officials.

2. As a Democrat, do you consider yourself a representative of Fayette County’s majority population interests, or just the interests of one party? Explain.

No Democrat can represent a county that has a majority population of Republicans. However, I try to represent all of the people of Fayette County. I listen to people in my district and in the county regardless of party affiliation.

Furthermore, I believe that there are far more things that we all agree on than not. I support our excellent public school system, lowering taxes, protecting the environment, a strong business climate, aggressive law enforcement and eliminating government waste.

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Submitted by fayette fan on Sun, 07/06/2008 - 10:14pm.

Reintroduce a bill I authored last session that would allow people on unemployment to continue to receive those benefits as they were attempting to start their own business.

Anybody besides me predicting an increase in the number of "failed" start-ups (that would never have been attempted if the unemployed "owner" had to start with enough capital and a decent business plan)? And how many small business creditors will they leave unpaid in their wake??

Pay for performance

Whose performance are we talking about? How does a teacher perform when parents don't check homework? How does a teacher perform when the curriculum gets crowded with garbage like character education so that there is less opportunity for repetition (which is how children learn most things)? What pay can a teacher expect when he/she performs and the child does not? Pay for performance is nothing but a sure way to end up with lawsuits for discrimination (racial, gender, age, nationality) as principals "reward" their favorite teachers and withold salary increases and promotions to those who don't play the game.

Focus on keeping kids in school by raising the age at which a student can drop out to 17

And where's the funding for truancy officers to drag them back to school when they drop out before 17?

Update the curriculum and teaching methodologies to reflect the learning styles of today’s children

Not necessary. Go back to a classical education, leave room for repetition to get the lesson to sink in and the kids will do just fine.

Circuit breakers provide property tax assistance by ensuring property taxes do not exceed a homeowner’s or renter’s ability-to-pay.

(Stage whisper: Who wants to break the news to him that renters don't pay property taxes?)

Additional services that would be taxed: accounting fees, home improvements, towing charges, docking/landing fees, interstate long distance phone, motor vehicle maintenance/repair, cable, club membership and dues, etc.

Ok, so the cost of getting my taxes done correctly (so I don't get hit with interest and penalties on a filing error) will go up but will be deductible on my next year's income tax filing. Tell me, again, how this will bring revenue in to the State coffers. Oh, and the Chamber of Commerce, the Commerce Club, the Rotarians, etcetera, are gonna Love the membership tax. Membership really will have its privileges.

Exclude services such as healthcare, housing, education, legal, banking, public transit, insurance and financial services; there are 40 services that are purchased predominately by households.

Why should banking services be tax exempt? Sounds like somebody's trying to give a gift to campaign contributors to me.

And right now, I am actively supporting a group of citizens in South Fulton whose homes have been impacted by a nearby rock quarry.

It's only support if you hadn't told the quarry owners that the regulatory agency was coming out to measure the force of the quarry blasting. I'll bet the quarry owners appreciated being told that was coming so that they could reduce the blasting strength and not be liable. Those homeowners probably don't have a clue that they've been sold out.

The Question the Citizen Didn't Ask (but should have):

When is Fludd going to apologize to the employees of Fayette DFCS for lying to the Governor and claiming that Fayette DFCS "takes" minority children more than non-minority children? Man up, Fludd. Admit it. You did it. You were wrong.

Submitted by sageadvice on Mon, 07/07/2008 - 5:39am.

First, thank you for at least having an interest in our society's government.
However many of your comments are unclear:
Should unemployed continue to get paid while starting a business?
You say no they are losers to start with and have no capital. How do you know that for everyone? Maybe we should do more for them---like help them start it!
We should not pay teachers extra for performance when the parents won't help?
This country was built on the premise of deciding who best does a job---by their supervisor, whose job should also depend upon him or her doing that judging correctly. Sorting by talent is a necessity for the kids sake.
Should we keep kids in school until 17 at least?
Yes, but in a technical or Industrial arts school if they don't do studying well.

Update the curriculum?
Yes, make it harder. Sort out those incapable of learning it and put them to doing something that they can do.

Renters don't pay property taxes?
Of course they do. They are the ones providing the cash to the landlord to pay them.

All that tax business you tried to explain?
The new "Fair tax" will take care of all that!! Right!

Submitted by fayette fan on Tue, 07/08/2008 - 11:50pm.

Should unemployed continue to get paid while starting a business? You say no they are losers to start with and have no capital. How do you know that for everyone? Maybe we should do more for them---like help them start it!

No, my point is that lazy people who can't (or won't try to) find another job will just make a sham of starting a new business long enough to keep the unemployment benefits coming. Some of them may not be lazy and have the best of intentions and really believe that they have what it takes to make the business work. But, the chances of a business that starts out when someone is desperate for work and probably hasn't done much planning is slim and none.

We should not pay teachers extra for performance when the parents won't help? This country was built on the premise of deciding who best does a job---by their supervisor, whose job should also depend upon him or her doing that judging correctly. Sorting by talent is a necessity for the kids sake.

Yes, sorting by talent is a necessity but let's get real honest here. How many times have you seen a talented teacher get passed over for something because they're not a "Friend of Sam"? Every environment is polluted by office politics and a certain amount of croneyism. In a school system, linking pay to "performance" is going to depend on who is defining "performance". And, in that case, you'll have more instances where the performance is less about making the kids better students and more about making their supervisor happy. As I said, define performance first, and then talk about tying pay to that standard.

Should we keep kids in school until 17 at least?
Yes, but in a technical or Industrial arts school if they don't do studying well.

I don't disagree with this. All I'm saying is that raising the age for mandatory school attendance is worthless if we don't also fund truancy officers to round up "the strays".

Update the curriculum? Yes, make it harder. Sort out those incapable of learning it and put them to doing something that they can do.

Okay, now you're confusing me. You want to link pay to performance (how ever you define that term) and then, if the child is incapable of learning (whatever that means), the kid gets shuffled off to trade school so that the teacher doesn't have to perform??? Please explain.

Renters don't pay property taxes? Of course they do. They are the ones providing the cash to the landlord to pay them.

Yes, they pay them indirectly but Fludd's response implies that renters pay property taxes directly. The bill is in the name of the property owner; if a renter doesn't pay, the owner is still required to pay the taxes or have their home foreclosed for taxes.

All that tax business you tried to explain?
The new "Fair tax" will take care of all that!! Right!

Uh, wrong. Fair tax will only move us away from being an ownership society to being a renter society because the only one who pays the tax is the one who owns the stuff. As a renter or lease (car, boat, etc.), you never own it. Sorry, you're barking up the wrong tree.

Submitted by sageadvice on Wed, 07/09/2008 - 7:33am.

You confound me with some of your solutions, so I'll say it again:

Unemployed: The question was: Should the UNEMPLOYED get help to start a business? Not lazy people! Of course they must be vetted.

Pay some teachers more for doing more: The answer is not to dumb down everyone so all can pass as we now do. The teacher and their supervisor should have the responsibility to "sort" correctly and push the rest even harder! I know parents don't want their kids sorted, but it must be, at least until they can prove they can attend regular classes again.

Renters and property taxes: Renters put out the cash for the tax--not the owner--he uses the renters money as an agent. He will can the renter if he doesn't pay and get someone who will pay.

Fair Tax: I don't advocate it at all, just being silly there.
But I do not see the connection with leasing and the fair tax!

Submitted by wildcat on Wed, 07/02/2008 - 6:54am.

Pay for performance? I guess everyone will be vying for those gifted slots! Raise the drop-out age to 17? When they're 15 and DON'T want to be there it's hard enough. Required parental involvement? Will there be a negative consequence if the parents don't abide?

Cyclist's picture
Submitted by Cyclist on Fri, 07/04/2008 - 10:21am.

I suspect if there was negative consequences, Mr. Softy would elect not to pursue. Just like those cases involving "false swearing" on school residency affidavits.

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