Georgia has made strong progress in lowering its income tax, but we must go further. The current flat tax rate of 5.19% is scheduled to drop to 4.99% using revenue triggers, yet we are surrounded by states with no income tax or falling tax rates.
To cut taxes further, Georgia policymakers can look to Iowa’s Taxpayer Relief Fund as a model. Established through conservative budgeting, Iowa’s fund ensures that surplus revenues are used to cut taxes, not grow government. The result? Iowa’s income tax has fallen from 8.98%, once one of the highest in the nation, to 3.8%, which is one of the lowest in the nation among states with an income tax.
Creating a similar fund in Georgia would place future rate reductions on a stronger, more sustainable foundation. It would also help Georgia keep pace with neighboring states.
Here’s what you need to know:
💰 Taxpayer Relief Fund Model: Iowa captures surplus revenues to fund permanent income tax cuts, not new spending.
🏛️ Conservative Budgeting Works: Strict spending discipline helped Iowa grow its fund from $8.4 million to $3.6 billion in just eight years.
🧱 Protect the Purpose: Such a fund must be safeguarded to prevent lawmakers from diverting dollars to unrelated programs.
By following Iowa’s example, Georgia can strengthen its economy, protect taxpayers and continue its march toward lower income taxes.
How would a taxpayer relief fund work in Georgia? We have a special commentary this week from John Hendrickson with Iowans for Tax Relief Foundation.
Have a great weekend,
– Kyle Wingfield
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Peach Picks 🍑
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Quotes Of Note 🌟
“The way to get started is to quit talking and begin doing.” – Walt Disney
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One More Fact 💡
Georgia is facing a steep housing shortage. We’ve estimated that tens of thousands of homes are needed across metro counties just to meet current demand.
Yet, burdensome local zoning rules that dot Georgia’s cities and suburbs such as oversized lot requirements, protracted approvals, restrictive setbacks and opaque discretionary processes stall new development and drive costs higher.
Texas faces a similar challenge, and this year its legislature took decisive action that could offer a roadmap for Georgia. Texas’ Senate Bill 15 loosens constraints on lot sizes and density in new subdivisions, while SB 840 allows mixed-use and multifamily housing by right in commercial zones without rezoning hurdles. Together, these reforms reduce uncertainty, lower soft costs and unlock underutilized parcels for housing.
If Georgia moved toward comparable reforms, we could expand housing supply faster. Builders could deliver a wider variety of homes—from duplexes and small townhouses to infill apartments—giving families more affordable options without worsening sprawl.
More permissive zoning isn’t about sacrificing quality. It’s about trusting the market and empowering communities to grow affordably and sustainably.