Most Georgians could use a few extra dollars in their pockets. A pair of laws passed during this year’s Legislative Session took effect at the beginning of this month and are designed to do just that.
Many Republican controlled states have chosen to follow Tennessee and Florida’s model and eliminate or slash the income tax. Georgia House Bill 1015 will reduce the state income tax rate by 0.1% per year over the next five years should state revenues remain stable. This will drop the tax rate from its current 5.49% to 4.99% and be the largest income tax cut in Georgia history.
House Bill 1021, which also took effect on July 1st, expanded the state deduction for dependents to $4,000. This is a 33% increase from the previous $3,000 per dependent. The effective savings for families is $54 per child, per year.
The Georgia Chamber of Commerce spoke highly of both bills calling them “critical policies that will contribute to the continued success of the Peach State’s pro-business environment.”
These and other tax measures passed this session will save Georgia taxpayers over $1 billion this calendar year. Georgia currently spends over $61 billion and the current budget represents a 7% increase over last year, with record spending on education and other state priorities.
House Bill 1015 enjoyed unanimous support in the state House, passing 165-0.
“Each of the bills I sign today will also help hardworking Georgians buy through high grocery prices and high energy prices and an inflationary environment that we have been in for several years now,” said Governor Brian Kemp during a ceremony signing HB 1015 into law. “[W]e realize Georgians know best how to spend their money a lot better than the government does.”Georgia has enjoyed record surpluses the past years and tax cuts are expected to spur the economy even as inflation creates financial nightmares nationally.
