Hill’s income tax cut bill passes Senate

[private]Senate Republicans have passed Sen. Judson Hill’s legislation (HB 238) that would cut the state’s top income tax rate from 6 percent to 5.4 percent.

The vote was 35-17 Wednesday to adopt HB 238 and send it to the House of Representatives for consideration, but that may be as far as the bill goes.

Senators also adopted on Feb. 29 a constitutional amendment (SR 756) authored by Hill that would trigger automatic reductions in Georgia’s income tax rate whenever state revenue growth rises above specified levels.

That legislation has rested in a House committee ever since and shows no signs of moving.

Hill has long advocated drastic reductions in the state income tax, but Gov. Nathan Deal and legislative leaders have cautioned that such a major change in the tax code could endanger the state’s AAA bond rating.

The Georgia Budget & Policy Institute has estimated that the bulk of the tax benefits that would result from the enactment of HB 238 would flow to the wealthiest 20 percent of Georgians.

“The bottom 80 percent of Georgia households, or those with incomes below about $100,000, would gain an average tax cut of less than $100 a year,” GBPI said in a recent analysis.

Georgians who make more than $500,000 a year, on the other hand, would receive an average annual tax cut of nearly $2,850, GBPI said.

© 2016 by The Georgia Report


Tags: income tax rates , Judson Hill