Governor Brian Kemp (R) pitched new legislation on Monday that he said will “accelerate” Georgia’s new income tax cuts. Beginning in 2024, the Kemp’s plan would steadily increase income taxes annually until the tax rate falls to 4.99 percent.
Kemp announced the move to expand on HB 1437, which established a flat income tax in Georgia by which all income earners are taxed equally at 5.49 percent. While HB 1437 called for the tax rate to eventually decrease to 4.99 percent, Kemp said in a Monday statement that his changes to the law will mean Georgians pay less taxes sooner.
“When I signed the largest income tax cut in state history in 2022, I did so with the understanding we would deliver on this promise in a responsible way,” Kemp stated on Monday. He added that Georgia is “well-positioned to move the timeline up” and increase taxes at a greater rate in the 2024 legislative session.
Should the legislature pass Kemp’s recommendations, the accelerated tax reduction will see Georgia taxpayers pay a 5.39 percent income tax rate in 2024, 10 basis points lower than the 5.49 percent set by HB 1437. The income tax will be lowered by 0.1 percent each year until it reaches 4.99 percent, according to a press release from the governor’s office.
The press release claims the accelerated schedule will save taxpayers about $1.1 billion in 2024, when combining the original effects of HB 1437 with the accelerated schedule.
Georgia Lt. Governor Burt Jones went further, declaring Kemp’s announcement “is a great step toward ultimately eliminating Georgia’s income tax, a top priority of mine.” Jones campaigned on a promise to fight the national inflation rate by decreasing state taxes.
Speaker of the House Jon Burns (R-Newington) emphasized the importance of conservative government, adding that “conservatives” are “guided by the principle that tax dollars belong to those who earned them.” Burns explained that “conservative leadership is once again lowering taxes on hardworking Georgians so they can support their families at a time when inflation has eroded the buying power of their paychecks.”
Kemp’s decision to lower taxes at a more rapid pace comes after the state reported nearly $11 billion in cash reserves in an October report. Georgia also boasts $5.4 billion in its rainy day fund, $2.1 billion in its lottery reserve fund, and recently purchased $10 million in Israeli bonds to support the country’s defensive war against Hamas.
In addition to introducing the flat tax and lowering it, last year Georgia Republicans successfully passed a one-time $1 billion tax rebate that saw Georgia taxpayers who filed and paid their taxes receive up to $375 back from the state government.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Georgia Star News, The Virginia Star, and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
Photo “Gov Brian Kemp” by Georgia.gov.
