Autumn A. Arnett
Georgia Gov. Brian Kemp wants the state Legislature to consider lowering the state income tax rate in 2024, citing a huge surplus in the state’s budget for 2023.
Prior to 2024, households were taxed on a graduated system where those with higher incomes paid higher tax rates, but changes to the tax code set to go into effect this year — signed into law by Gov. Kemp in 2022 — would shift to a flat tax model. Under the new policy, all Georgia residents are scheduled to pay a 5.49 percent tax rate across the board in 2024, with the amount set to decrease by an additional .1 percent each year until it reaches 4.99% in 2029.
This represents a sharp increase for many; most households amassing less than $250,000 per year currently pay less than 5.49 percent in state income taxes; according to the 2020 U.S. Census, only the top 5 percent of Georgia households bring in more than $233,979. Previously, Georgia’s top earners paid up to 5.75 percent, while those who brought home the least paid as little as 1 percent.
Citing a large surplus in the state’s budget again in 2023, Governor Kemp’s office wants the Legislature to consider accelerating the decrease to 5.39 percent this year — the rate it was previously set to reach in 2025.
House Bill 1015, which accelerates the rate cut, is currently making its way through the state Senate and was passed by the House with a 165-0 vote.
“Cutting taxes and returning more money to taxpayers continues to be a priority for the Georgia House of Representatives, and today’s passage of HB 1015, HB 1019, and HB 1021 will help return over a billion dollars to Georgia families, homeowners, and taxpayers alike,” Speaker of the House Jon Burns, R-Newington, said in a statement. “These priorities will deliver significant relief to taxpayers across the state, put more money back into their pockets, and continue to boost our economy as the best state in the country to live, work and…
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