Good Times in Georgia Spur Tax-Cut Push as History's Lesson Lost
- One measure would trigger more cuts when savings swell
- `You should be building reserves in good times,' analyst says
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Times are good in Georgia after four years of growing revenue. So lawmakers there are preparing to cut income taxes to one of the lowest levels in the southeast, joining states determined to reduce rates instead of letting the cash build up.
Republicans, who control both houses of the legislature and the governor’s mansion, back the cuts as a way to give Georgia an edge as it competes with neighboring states to lure businesses. To critics, it will impair the state’s financial flexibility the next time the economy stumbles and put its AAA bond rating in peril.