Georgia lawmakers inch closer to eliminating the Peach State’s income tax, prompting praise from supporters and derision from critics.
Both income and property taxes have been a point of contention for legislators. The Republican-led state government has been strategizing a way to either curtail or eliminate both, despite strong opposition that cites the role income taxation plays in the state budget.
“Families in Georgia are having a hard time paying for gas, groceries, and child care,” said state Sen. Blake Tillery, R-Vidalia, according to AJC. “Why would we not be trying to give them a 5% raise overnight?”
The GOP-led Senate Special Committee on Eliminating Georgia’s Income Tax invited economist and author Art Laffer to Atlanta to testify on behalf of “widening” the state sales tax to offset the potential loss of funds.
“What I’m saying here is when a state introduces an income tax, it collapses before your very eyes. If they were to get rid of their income tax, they could return to the state they were prior to the income tax, which would be an enormous improvement,” Laffer testified.
Critics have expressed concern about the economic impact on working class families should the income tax be eliminated.
Democratic state Sens. Ed Harbison and Nan Orrock said in a joint statement, “Republicans want to jack up taxes on the middle class to give rich people a massive handout following the meeting.
“This handout will make raising a family, buying a house, or running a business more expensive,” they added.
The Georgia Budget and Policy Institute (GBPI) agreed, calling the move ‘regressive.’ (RELATED: Secretary of State Brad Raffensperger Announces Run for Governor)
“Some elected officials have promised that eliminating the state income tax would lift incomes for Georgians by upwards of 5%,” the GBPI said in a statement. “On the contrary, it would likely mean the opposite for the majority of Georgia families, amounting to the largest tax increase in modern state history for most.”
These critics have received pushback from supporters, including the Independent Women’s Forum (IWF), who said, “For women juggling careers, child care, and household budgets, the stakes couldn’t be higher. As inflation bites and affordability crunches hit home, policies that prioritize economic freedom over government largesse offer real relief. Georgia’s experiment could set a precedent—or a cautionary tale—for the rest of the nation.”
IWF Economic Opportunity director Patrice Onwuka testified at a hearing on the matter, saying on social media that “states should not penalize work, and hardworking Americans should not be burdened with extra taxes.”
Tillery plans on adding the income tax elimination to the 2026 session of the Georgia General Assembly agenda. “Nine other states have already figured out how to eliminate their income tax. Georgia should too,” Tillery said, according to a JustTheNews report. (RELATED: Residency Disputes Put Atlanta District 11 Council Candidates at Risk)
