Deal's comments to a gathering of state lawmakers at a retreat in Athens came after the head of a panel weighing an overhaul of the state's tax code said education and infrastructure played larger roles in luring business to the state than taxes.
While A.D. Frazier said he was not opposed to reducing the state's corporate tax rate, he noted Georgia already has some of the lowest business taxes in the nation.
Frazier heads the Special Council for Tax Reform and Fairness for Georgians, which is set to make recommendations to the Legislature before the Jan. 10 start of the 2011 session.
Frazier provided few specifics but said Georgia should consider lowering personal income tax rates and instead expand taxes on goods and services.
Republicans in the state Legislature have long pushed for a move toward a more consumption-based approach that could tax services that currently aren't taxed, like haircuts or lawn work.
Like Deal, Frazier was focused on how they would impact Georgia's sputtering economy. He said any changes to the state's tax structure ``should help create jobs.''
Deal made reducing the corporate tax rate from 6 percent to 4 percent a key campaign pledge. The corporate income tax made up 1.9 percent of Georgia's total revenue in the first half of fiscal 2011, compared to 33.5 percent from sales and use taxes and 51.6 percent from the personal income tax.
The governor-elect used the example of one unnamed businessman who is trying to decided between Tennessee and Georgia for an expansion. Deal said Tennessee has lower business taxes and could have an advantage.
``We all know that in the aggregate the tax climate in our state has an impact on whether or not we are viewed as a place that can grow jobs,'' Deal said.
Deal laid out few specifics about his agenda on Tuesday. He will be sworn in as Georgia's next governor Jan. 10.
As he arrived at the legislative biennial retreat on Tuesday, Deal joked that he felt ``like one of those department store Santa Clauses that had the great big sack on his back.''
``And all the children were clamoring to see what was in the bag,'' Deal said. ``And I'm not going to tell you. I don't want to spoil your Christmas.''
``We all know that in the aggregate the tax climate in our state has an impact on whether or not we are viewed as a place that can grow jobs,'' Deal said as he laid out few specifics about his agenda on Tuesday. (AP file photo)
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