The Georgia Budget & Policy Institute’s new report Georgia’s Income Tax Essential for State’s Economy and Families examines Georgia’s income tax, provides a comprehensive overview of the economies of no-income-tax states, and outlines why income taxes are essential to Georgia’s well-being.
According to GBPI’s report, there is no evidence that income taxes hinder state economies, and over the last decade, states with the highest income tax rates have performed just as well, if not better, than those without income taxes. No-income-tax states are also plagued by other unappealing qualities, such as more minimum wage jobs, lower quality of life, and poor social and economic outcomes.
The evidence shows that no single factor, including income tax rates, is the dominant driver of a state’s economy. To bolster the state’s prospects for the future, policymakers should pursue sensible, comprehensive tax reform that generates the money to meet Georgia’s growing needs.