ATLANTA (January 19, 2016) | Sen. Judson Hill (R – Marietta) intends to file legislation reducing taxes for the people of Georgia.
“We need to do all we can to reduce the tax burden on Georgia’s hardworking families, and my Tax Relief Act does just that,” said Sen. Hill. “Revising our current tax law would allow Georgians to keep more dollars in their pockets and make their own decisions on whether those dollars should be saved, invested or spent.”
The bill, to be entitled the Tax Relief Act of 2016, would reduce the personal income tax to a flat 5.4 percent and increase personal exemptions per person by $2,000. It would also limit some itemized deductions for itemizers, but would still preserve all deductions for charitable contributions, medical expenses and most mortgage interest and property tax deductions. Finally, it would eliminate both the marriage penalty and corporate net worth tax while maintaining the current sales tax base and rate.
A proposed constitutional amendment would also be filed with the proposed legislation. This amendment would reduce the personal income tax rate further down to a 5 percent floor, dependent on state revenues as well as the level of Georgia’s “Rainy Day Fund” being at approximately 1.7 billion or higher.
Georgia’s current individual income tax is 6 percent, which is the highest rate among the southeastern United States. A shift to 5.4 percent from 6 percent would bring Georgia’s rate below North Carolina and South Carolina. The rate change will increase Georgia’s visibility among the most competitive states for business.
The Tax Relief Act of 2016 will also simplify administrative measures and reporting for small businesses that currently make up approximately 60 percent of Georgia’s businesses, to eliminate the corporate net worth tax.
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For Immediate Release:
January 19, 2016
For Information Contact:
Jennifer Yarber, Director