Governor Deal unveiled a new proposal today that is expected to cut the state income tax rate.
Because of the new federal tax law, the state of Georgia is expected to rake in an additional $4.7 billion dollars in taxes over five years. However, Governor Deal and other lawmakers announced a proposal today to address the issue.
The proposal would cut the state income tax rate for individuals and businesses from 6 percent to 5.75 percent, starting in 2019. The General Assembly will also be given the option to further reduce the tax rate to 5.5 percent in 2020.
In addition, the plan proposes doubling the standard tax deduction for all tax filers, and eliminating sales tax on jet fuel.
It is estimated the proposal will not only eliminate the federal bill windfall, but also cut income tax over the next five years by $516 million. The plan is expected to be voted on by the House at the end of this week.
Deal had originally hoped to leave the issue of the tax windfall to whoever takes his position as governor, but he was pressured by GOP lawmakers who will be facing re-election in November.
Supporters of the bill are calling it the largest income tax cut in Georgia history.