James September-October 2024 web - Flipbook - Page 63
politan area are regionally renowned for their affluence.
Where there is wealth, there are financial services for
the wealthy. Where there are financial services, there is
a robust financial industry. The finance industry is one
that clusters, and ancillary industries like accounting,
legal, real estate, and business services follow.
In 2022, the finance, insurance, and real estate industry in the state of Georgia contributed $136.71 billion
to the state’s bottom line, which is roughly 18 percent
of the state’s GDP. This is our most valuable industry.
We should see the numbers increase, and if so, we will
have the potential to become a financial juggernaut like
London, Hong Kong, Chicago, or Midtown Manhattan.
Drivin g Towards the Future
Regional competitors like Dallas, Austin, Miami,
Charlotte, and Nashville are also booming, especially
within the finance industry. There is clearly a race to create a “Wall Street of the South.” We are at a crossroads:
we can either maintain the status quo or move forward
and experience explosive growth. The risk of financial
operations moving to other cities should prompt legislators and state leaders to dedicate substantial resources
to support these businesses. Instead of Charlotte or
Miami, why not Athens or Savannah?
It is time to create banking and finance special economic zones through a state and federal partnership
to ensure Georgia remains a leading financial hub. We
should entice major financial firms to move back-office
operations to our regions with lower living costs. The
growth of artificial intelligence— while still in its infancy— will likely transform financial back-office efficiency
and operations. And we should prepare for this. We
should also consider emulating South Dakota’s trust
law or increasing our asset protection laws to attract
more deposits. State legislators and local leaders need
to do what they can to retain and attract wealth and
financial businesses.
As we drive out income tax, it’s essential to balance
industry tax rebates carefully to ensure we maintain our
success. If we cut income tax, we should also consider
cutting capital gains tax.
Implementing former Georgia Congressman John
Linder’s Fair Tax Act could be advantageous. Georgia
should think in terms of trillions, not just billions. Political, business and social leaders must stay obsessed
with our status and embrace the evident power of our
financial acumen, cultivating its influence more each
day. Without this ongoing effort, another capital in the
shadows will come forward with tax breaks, lobbyists,
and subsidies-- potentially eroding the foundation Atlanta has been building since the 19th century.
Chadwick Hagan is the founder of Hagan Capital Group, a private
fund and corporate finance advisor in Atlanta. He is also a philanthropist
and author.
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