(The Center Square) – A group of Republican lawmakers has unveiled a plan to cut taxes for Georgia residents by $1 billion.
the proposal Authored by House Ways & Means Chairman Shaw Blackmon, R-Bonaire, the state income tax rate would be reduced and the standard withholding tax increased.
“This will keep more money in the pockets of our citizens, especially those who need it most,” Blackmon said during a news briefing on Tuesday.
If the measure becomes law, it would be the third tax cut lawmakers have approved for Georgian taxpayers in the past five years.
Lawmakers lowered the state’s maximum income tax rate from 6% to 5.75% in 2018. Last year he increased the standard tax deduction for low- and middle-income Georgians.
Under current law, single parents can deduct $4,600 from their taxes, married couples filing separately can deduct $3,000, and married couples filing together can deduct $6,000. Blackmon’s proposal frees up to $12,000 for singles and $24,000 for married couples. In addition, the income tax rate will be changed to a flat, flat rate of 5.25%.
Blackmon said a family of four would pay no state income tax on their first $30,000 of income and would see a $400 tax break for $50,000 of income under the proposal. He said the tax rate, standard deduction and other provisions in the plan could result in tax savings of about $1 billion per year when the cut goes into effect for calendar year 2024.
Danny Kanso, senior policy analyst at the Georgia Budget Policy Institute, said introducing a flat tax rate is “dangerous”. He said it would hurt low- and middle-income earners and reduce the tax burden on high-income earners.
“Legislators can improve the proposal and rebalance the tax code by rejecting the flat tax, lavish corporate subsidies offered by the tax code such as average — and adding a refundable earned income tax credit,” Kanso said.
