Georgia Republicans are making a bold promise in their push to eliminate the state’s income tax, vowing unequivocally not to replace lost revenue through new or increased taxes on groceries, property, or gasoline.
Senator Blake Tillery, who leads this ambitious effort, chairs both the influential Senate Appropriations Committee and a dedicated study committee focused on ultimately abolishing Georgia’s current 5.19% income tax. His commitment comes as the study committee explores various pathways to a tax-free income model.
During a recent meeting, lawmakers delved into strategies employed by states that forgo an income tax, often relying heavily on sales taxes. Florida, for instance, generates a significant three-quarters of its general revenue from a 6% sales tax, a model proponents link to its strong population growth.
Sarah Hicks, a former budget director from Texas, echoed this sentiment, asserting that the absence of an income tax is a powerful magnet for businesses, fostering job creation and economic vitality. Texas itself derives roughly half of its state revenue from sales taxes.
However, the potential pitfalls of such a shift were highlighted by Senator Nan Orrock, who cautioned that sales taxes disproportionately burden low-income earners compared to income taxes.
Despite these concerns, Senator Tillery unequivocally stated that the committee’s deliberations would steer clear of considering offsetting taxes on essential goods. The next hearing for the study committee is slated for mid- to late-October, where further discussions are expected.
The push to eliminate the income tax is not entirely new; the General Assembly has already embarked on a gradual reduction of the rate, steadily lowering it from 6% to its current 5.19%. As the study committee continues its work, the challenge remains for Georgia Republicans to demonstrate how the state can maintain vital services and robust economic health without its primary revenue source, and without burdening citizens with new taxes on everyday necessities.
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