New version of tax bill would cut state income tax

[private]Gov. Nathan Deal is proposing more changes to Georgia’s tax code that include a reduction in the state income tax and a doubling of the standard deduction for all taxpayers.

Deal, along with Lt. Gov. Casey Cagle and House Speaker David Ralston, unveiled the latest amendments Tuesday to HB 918, which tries to align state tax law with the massive tax cut passed by Congress late last year.

HB 918 now would double the standard deduction for Georgia taxpayers for all filing statuses, effective Jan. 1, 2018.

The bill would also reduce the income tax rate for individuals and businesses from 6 percent to 5.75 percent effective Jan. 1, 2019 and then lower it again to 5.5 percent effective Jan. 1, 2020.

Deal said all of the changes will amount to one of “the biggest income tax cuts in state history.”

“Taxpayers have already started to experience the positive effects of federal tax reform here in Georgia and throughout the country,” Deal said. “Our state is also projected to benefit significantly in the coming years.”

Deal estimated the tax changes “will save taxpayers more than $5 billion over the next five years. Doubling the standard deduction will also allow Georgia filers to take fuller advantage of the newly enhanced federal standard deduction.”

HB 918 still would provide tax break for Delta Air Lines by eliminating the state sales tax on the sale of jet fuel.

© 2018 by The Georgia Report

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Tags: Georgia income taxes , Nathan Deal