Unequal Opportunity

On March 24, Gainesville state Sen. Casey Cagle’s Senate Finance Committee approved two new tax breaks for big business — $4 million for construction of the new World of Coca-Cola museum and another hefty gift for farmers that exempts purchases of ice used to store vegetables and poultry. Both of the measures had already passed the House.

Then came state Rep. Georganna Sinkfield, D-Atlanta. She brought a third proposal for tax breaks for businesses that invest in individual development accounts for low-income people. The maximum the state could dole out in tax breaks via the IDA program in any given year was $4 million.

IDA’s, which require the recipients themselves to build savings before they can be matched by businesses or nonprofits, aren’t a new concept. Twenty-three such programs already exist in metro Atlanta, Macon, Columbus and Savannah. In 2003, more than 200 IDA initiatives across the 50 states allowed for the investment of $168 million, mostly to start new businesses. It’s a classic hand up instead of a handout. The measure passed the House 167-1.

But when Cagle got to the bill, he held it in his hands for a moment, Sinkfield says, and then put it aside. The Department of Revenue had questions about it.

This surprised Sinkfield. The revenue commissioner had been in on the creation of the bill.

So what was the problem? The department apparently had made it clear that it didn’t want the Legislature giving out tax breaks when the state is having trouble balancing its books. Uh-huh. Evidently, there was a double secret exemption for Coke and poultry producers.

Cagle may have effectively killed the legislation. On Tuesday, with just one day left before the end of the session, Sinkfield still hadn’t gotten the measure out of the Senate Rules Committee. She wasn’t hopeful it would see the light of day.

Poor folks can just have a Coke and a smile instead.