A $1 billion election-year tax cut the Republican-controlled General Assembly passed last year will take effect on New Year’s Day. For now, the phased-in tax cut sets the state income tax rate for 2024 at a flat 5.49%, down from the current 5.75%.
The tax rate will continue to decline annually, arriving at 4.99% in 2029. However, Gov. Brian Kemp announced earlier this month that he plans to ask lawmakers to accelerate the reductions by one year. Supporters say across-the-board tax cuts are more effective at creating jobs than the assortment of tax credits and exemptions for specific industries the General Assembly has passed over the years.
But the bill drew 13 “no” votes from Democrats in the 56-member state Senate. Opponents cited an analysis by the left-leaning Georgia Budget and Policy Institute that House Bill 1437 would raise taxes on about 10% of taxpayers, while $620 million of the $1 billion tax cut would benefit only the top 20% of taxpayers.
