No wonder the Republican Party can't seem to organize a unified and
coherent message. On Monday, a prominent Republican governor vetoed a
tax cut, and the party faithful as well as taxpayer groups are fuming
that they've had the rug pulled out from under them.

Governor Sonny Perdue of Georgia used his veto pen to strike down a
GOP-led pro-growth tax cut because, he said, "Georgia is a balanced
budget state. It's very difficult to do the stimulus-type bills in a
state that is starved for revenues."

The Atlanta Journal Constitution headline said it all: "Your Morning
Jolt: Sonny Perdue Says Georgia Can't Afford Supply-Side Economics."
In truth, though, says Kelly McCutchen, president of the Georgia
Public Policy Foundation: "Sonny Perdue has never believed in supply
side economics. He passed a big tax increase in his first term."

PD warned of this potential outcome in recent weeks, as Mr. Perdue
began to waver and search for veto excuses. The tax cut bill sponsored
by Rep, Tom Graves and Senate Majority Leader Chip Rogers passed both
houses with comfortable majorities, but not big enough to overturn a
veto. Mr. Perdue has too many allies among Democratic legislators who
share his affection for high taxes. The plan would have cut the state
capital gains tax, provided a credit for hiring new workers, and
provided sales tax relief to businesses. But Mr. Perdue countered in
his veto message that he doesn't buy into "supply side theory within a
state government."

Republicans I talked to in the legislature are angry and demoralized.
Mr. Graves said supply-side economics "has been a formula for success
at the federal level and the state level. This is a setback for the
job creation movement in Georgia."

Ironically, Mercer College in Atlanta is in the process of opening the
first academic-based supply side economics center to be chaired by
Arthur Laffer. Boy, does the state need it.

-- Stephen Moore