ATLANTA – The Republican-controlled Georgia House of Representatives passed a $1 billion state income tax cut today, March 9, over objections by Democrats that most of the benefits would go to higher-income taxpayers, while some Georgians would pay more.
The law, passed 115-52 and now going to the State Senate, would reduce Georgia’s personal income tax rate from 5.75% to 5.25%.
While eliminating the standard deduction, the legislation would increase the standard exemption from the current $2,700 to $12,000 for single parents and from $7,400 to $24,000 for married couples applying together.
“A family of four doesn’t pay a penny in state income tax on their first $30,000 in income,” House Ways and Means Committee Chairman Shaw Blackmon, the bill’s lead sponsor, told House lawmakers during a brief debate.
Blackmon, R-Bonaire, said the same family of four with an annual income of $50,000 would receive a tax cut of more than $400.
“[This] will make us more competitive for wage earners at all income levels,” he said.
But Rep. Matthew Wilson, D-Brookhaven, cited an analysis by the Georgia Budget and Policy Institute that said the bill would raise taxes on about 10% of taxpayers, while $620 million of the $1 billion tax cut would make up just that top 20 percent would benefit taxpayers.
“We are effectively raising taxes on the working poor,” he said.
Rep. Jasmine Clark, D-Lilburn, said the legislation’s sponsors failed to explain what state benefits would need to be cut in order for the state to afford to eliminate $1 billion in tax revenues.
“We have to cut back on education, healthcare… mental health,” she said.
Wilson accused Republican leaders of making politics on the issue by pushing the bill through the House just a week after it was introduced.
“This law was rushed through in an election year because it looks good in one [campaign] Mailers,” he said. “But that’s not good politics.”
The law would go into effect in the 2024 tax year.