Georgia Senate Approves Tax Bill, Snubbing Delta in NRA Feud
The Georgia Senate approved a sweeping tax bill Thursday that punishes Delta Air Lines for cutting business ties with the National Rifle Association.
The measure, which was stripped of a jet-fuel tax break, passed the GOP-dominated Senate 44-10, with only Democrats opposed.
The Senate's presiding officer is Republican Lt. Gov. Casey Cagle, who vowed Monday to stop any tax break that would benefit Atlanta-based Delta — sparking a showdown at the state Capitol between gun-rights supporters and one of Georgia's largest private employers.
The Delta provision barely came up during nearly an hour of debate on the underlying tax bill, designed in part to reimburse Georgia taxpayers for $5.2 billion in extra state revenues expected in the next five years because of the recent federal tax changes approved by Congress.
A day after Republican Gov. Nathan Deal criticized an "unbecoming squabble" over Delta fueled by election-year posturing, Cagle took a softer tone in celebrating victory Thursday.
"Obviously the political environment does sometimes get a little testy, but in the end, it's all about the product," said Cagle, who is running this year to succeed the term-limited governor. "And the product we have today is something that all of us can be very proud of."
The tax bill passed the state House before the Delta-NRA controversy erupted, with the jet fuel exemption intact. That means the House and Senate would have to agree on a final version for the measure before it goes to the governor to become law.
Even as Deal sought Wednesday to minimize potential damage to Georgia's business-friendly reputation, the GOP-dominated Senate Rules Committee chopped from the broader tax bill a provision to lift the state sales tax on jet fuel. Atlanta-based Delta would have been the main beneficiary.
Rank-and-file Republicans in the Senate stood by Cagle's threat to squash the jet fuel perk, which he announced Monday with a tweet that said: "Corporations cannot attack conservatives and expect us not to fight back."
The chamber took up the full tax bill Thursday with a 34-15 vote to prohibit amendments, blocking any efforts to restore the Delta tax break. No Republicans opposed the parliamentary move.
"It's been strenuous," said GOP Sen. Michael Williams, another candidate for governor. "We've been attacked by the media, we've been attacked by the left. Big corporate has gone after us. And we've stayed strong. We've even stayed strong against our own governor."
Deal, serving his last year in office, said he plans to sign the broader tax bill, even if it's without the airline tax break he had pushed for. Deal said he will pursue exempting jet fuel from sales taxes separately.
That could be a tough sell with GOP leaders in the legislature. Though he refrained Thursday from further fiery rhetoric on Delta, Cagle showed no softening of his opposition to the jet fuel exemption.
"I think everyone knows my position on this issue, so I don't see any wiggle room, no," Cagle told reporters.
Delta's decision to stop offering NRA members discounted fares was announced in the wake of the deadly Valentine's Day shooting at a Florida high school. The airline employs 33,000 workers in Georgia. Its busy Atlanta hub has made Hartsfield-Jackson Atlanta International Airport the busiest in the world.
Deal has said the broader tax bill "represents one of the single largest income tax reforms in the history of our state." It would cut the top income tax rate for individuals and businesses from 6 to 5.75 percent in 2019, with the option for legislators to further cut it to 5.5 percent in 2020. It also doubles the standard deduction for all filers.