Particle.news

Download on the App Store

Georgia Senate Panel Opens Hearings on Phasing Out State Income Tax

The debate now centers on whether lawmakers can credibly replace roughly half of state revenue if the levy goes to zero.

Georgia State Capitol in Atlanta on December 30, 2024
FILE - Georgia Sen. Blake Tillery, R-Vidalia, listens to a reporter's question following Senate passage of a bill limiting state funding of gender affirming care on Tuesday, Feb. 11, 2025, at the Georgia Capitol in Atlanta. (AP Photo/Jeff Amy, file)
Image
Georgia Sen. Blake Tillery, R-Vidalia, and his wife, Dr. Ashlee Nicole Tillery, address supporters Aug. 11, 2025, at Daniel Field in Augusta to announce Tillery's candidacy for Georgia lieutenant governor.

Overview

  • The bipartisan Senate Special Committee on Eliminating Georgia's Income Tax convened its opening meetings on Aug. 19–20, led by Lt. Gov. Burt Jones and chaired by Sen. Blake Tillery, with a Dec. 15 deadline for recommendations.
  • Tax advocate Grover Norquist urged a phased path to zero and argued growth would offset losses, while Democrats and fiscal analysts warned repeal would trigger service cuts or large sales‑tax increases.
  • Individual income taxes provide about 47% of Georgia’s revenue, roughly $20 billion projected, highlighting the magnitude of the budget gap under consideration.
  • Governor Brian Kemp this year moved Georgia to a flat income tax, cut the rate to 5.19% with a path to 4.99%, and approved rebates, setting the immediate fiscal backdrop.
  • Options discussed included tighter spending limits and scaling back business tax incentives, but no detailed replacement plan has emerged as the effort intersects with 2026 campaign politics.