ATLANTA (AP) – Georgia’s House speaker on Tuesday proposed a $1 billion tax cut that would create a flat state income tax with a 5.25% tax rate, raise the amount of income exempt from taxation and eliminate many deductions.
Speaker David Ralston and House Ways and Means Committee Chairman Shaw Blackmon, both Republicans, said the bill provides tax relief and simplifies Georgia’s tax system.
“This plan lowers the rate and significantly raises the standard exemption. It’s simple. It’s fair, and allows Georgians to keep more of their money,” said Blackmon, of Bonaire.
The changes would begin in 2024, meaning most taxpayers would see no difference until they file their taxes in 2025.
Georgia’s top income tax rate is now 5.75%, which applies to income over $7,000 earned by a single person or income over $10,000 earned by a married couple or a single person with dependents. Below that are a series of lower brackets created when typical incomes were much lower.