E-mail Legislation Photo Album Contact Sheet Press
CONTACT:
Matt Metcaff 678.480.6281
Representative Earl Ehrhart
NEWS RELEASE
FOR IMMEDIATE RELEASE September 28, 2005
Ehrhart Testifies Before Congressional Subcommittee Supports Bill to Protect Georgia Businesses from Higher Taxes
Washington, DC State Representative Earl Ehrhart testified yesterday before the Subcommittee on Commercial & Administrative Law of the House Judiciary Committee on H.R. 1956, the "Business Activity Tax Simplification Act of 2005". Ehrhart testified in support of the measure, which would stop unjustifiable taxation of Georgia-based companies by states in which they have no physical presence. "If companies are paying state taxes only where they are physically present, then we can be comfortable knowing that we can attract business to Georgia, give them the services they need, get the taxes we need in return to help pay for those services, and hopefully persuade them to reinvest in Georgia in the future," Ehrhart told members of the subcommittee during his testimony. "But if they are going to be taxed anywhere they have customers or are making sales, then our efforts to recruit these companies will be in vain. Instead of reinvesting in the Georgia economy they will be paying taxes where they have no physical presence." Representative Ehrhart is the National Chairman of the American Legislative Exchange Council (ALEC). ALEC is a bi-partisan, individual membership organization of over 2,400 state legislators. In 2003, ALEC's Tax and Fiscal Policy Task Force unanimously approved a model resolution calling on Congress to protect and expand the physical presence requirement for the state collection of business activity taxes. He warned the committee about the consequences of allowing rogue states to tax businesses with no physical presence in their state. "It's bad for Georgia's economy and it's bad for the people of my district who need those high paying jobs to support their families and live out their hopes and dreams," Ehrhart stated during his testimony. "Let's restore some sense and some clarity to where our businesses pay their taxes and just simply say that they will pay taxes where they hold a physical presence."
###