This morning, Georgia woke up to a brighter tax future. In a late night flurry of votes, the House and Senate passed a bill that will gradually drop the state income tax rate from 5.75% to 4.99% by 2029.
Georgia Public Policy Foundation President and CEO Kyle Wingfield praised the decision:
“We congratulate the General Assembly for passing this pro-growth tax reform. Following their actions in 2018, lawmakers have taken another key step toward ensuring our state government does not overly burden Georgians through a tax on work, savings and investment.
“Other states around the country and especially in our Southeastern region are taking action to make themselves more competitive, and this strong, responsible plan will help ensure Georgia not only doesn’t fall behind, but remains a leader.
“We thank House Ways and Means Chairman Shaw Blackmon, Senate Finance Chairman Chuck Hufstetler, their committees, and House and Senate leadership for taking the initiative to enhance Georgia’s prosperity.”
This legislation will allow Georgia to remain competitive in a fierce tax battle among the states. Nearly a dozen states cut their income tax in the last year, and neighbors Florida and Tennessee have no state income tax at all.
Georgia Policy’s independent analysis of the original flat tax bill showed that it would result in almost $2.4 billion more in disposable income per person. This finalized bill could see that number rise.
“While the final bill differed from the original proposal, the outcome of a lower, simpler tax code remained.” said Director of Policy and Research Chris Denson. “At the end of the day, any legislation that allows Georgians to keep more of their money is a good thing.”
Read Georgia Policy’s independent analysis of the original House bill here.