Georgia’s Tax Reduction As State Has $16 Billion Surplus in Revenue
Atlanta, GA: Gov. Brian Kemp had previously announced his intention to seek further tax relief from Georgia lawmakers in the upcoming legislative session.
A new legislation has been passed, which will gradually lower the state’s income tax rate from 5.75% to 4.99% over the course of several years.
Kemp plans to suggest changes to the 2022 legislation by accelerating the schedule for the reductions. This would result in a tax rate of 5.39% for tax year 2024, instead of the 5.49% specified in the current version of the bill. The Governor’s Office of Planning and Budget projects that by accelerating the tax cuts, taxpayers could potentially save $1.1 billion during the upcoming tax year, beginning on January 1.
The governor highlighted his proposal as part of a string of tax cuts in Georgia. These include $2 billion in income tax rebates over the past two years, over $1 billion in property tax relief, and two temporary suspensions of the state sales tax on gasoline, resulting in savings of over $2.2 billion for motorists.
“We are taking a different approach in the Peach State,” Kemp stated, contrasting the tax-and-spending policies of big government and big spenders in Washington, California, and New York.
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“We firmly support the notion that individuals should have control over the tax dollars they have rightfully earned,” stated Georgia House Speaker Jon Burns, R-Newington.
Lt. Gov. Burt Jones expressed his enthusiasm for the new proposal, seeing it as a step forward in Georgia’s journey towards eventually eliminating the state income tax. Jones, who presides over the state Senate, commended the governor’s measured approach.
He emphasized the importance of approaching it in a financially prudent way.
Georgia has the financial means to comfortably accommodate the tax cuts. The state has accumulated a surplus of $16 billion over the past few years, with $11 billion in funds that have not been designated for specific purposes.
