A Georgia Senate committee is moving forward with a $140 million state income tax cut despite warnings that it could cost the state federal aid.
The Senate Finance Committee voted unanimously on Tuesday for House Bill 593, which would raise the amount of money that someone could earn before starting to pay state income taxes. The standard deduction for an individual would rise from $4,600 to $5,400, while the standard deduction for a married couple filing jointly would rise from $6,000 to $7,100.
The bill moves to the full Senate for more debate.
Support comes despite a provision in the recent federal relief bill that says states will lose a dollar in aid for every tax dollar they cut through 2024. Georgia is in line for $4.7 billion in federal aid, a giant infusion of cash for a state considering a budget that spends $27.3 billion in state tax money.
Gov. Brian Kemp and House Speaker David Ralston, both Republicans, have spoken out against the provision.