Slashing Income Tax Delivers Meager Benefit to Most, Jeopardizes Public Services

Bill Analysis: House Bill 238 (LC 34 4895S)

Georgia lawmakers are considering a pair of proposals that offer a miniscule tax cut to the majority of Georgia families and a massive benefit to the highest-income individuals who need it least, while jeopardizing lawmakers’ ability to meet the needs of a rapidly growing state. The first plan, House Bill 238, calls for a series of immediate changes to Georgia’s personal income tax that proposed earlier in Senate Bill 280 (LC 34 4760). Meanwhile, Senate Resolution 756 calls for a constitutional amendment to restrain the growth of Georgia’s future revenues and deliver further tax cuts down the road. That proposal is briefly explained in the companion GBPI fact sheet “Senate Resolution 756 Threatens to Disrupt Georgia’s Long-Term Finances.”

The potential income tax alterations proposed in HB 238 include a reduced top rate, increased exemptions that shield a certain amount of income from the tax and a new cap on taxpayers’ ability to claim special deductions for things like property taxes and mortgage interest. The proposal also eliminates Georgia’s corporate net worth tax, a minor levy that acts as a kind of minimum tax on some businesses.

Read the full bill analysis.

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