(The Center Square) – The Senate Special Committee on Eliminating Georgia’s Income Tax has one question on its agenda for Tuesday’s meeting: How would the elimination of an income tax affect Georgians’ lives?
But a report out this week could encourage lawmakers who are wondering how the state could afford to do away with the tax.
The “FY25 Georgia Revenues and Reserves Report” from the State Accounting Office shows Georgia has $9.6 billion in an unreserved surplus account and $5.6 billion in an account set aside for revenue shortfalls.
The nearly $14.6 billion is not quite enough to cover the $16 billion the state takes in annually from income taxes. Lawmakers pledged at their last meeting not to increase the sales tax on groceries or raise the state’s motor fuel taxes if lawmakers decide to eliminate the income tax.
Lt. Gov. Burt Jones will open Tuesday’s meeting.
“Since the creation of this special committee in August, we have heard testimony and analysis from experts and stakeholders, but it is critical that we hear from Georgia’s working families on how eliminating the income tax would impact their lives,” said Jones, who is running for Georgia governor. “The work of this committee is essential to achieving the goal of eliminating Georgia’s income tax in a responsible, efficient and comprehensive manner, while putting more money back in the pockets of hardworking Georgians. Involving them in the process is critical to developing a plan that will bring our income tax down and ensure Georgia remains competitive with our surrounding states for workforce and business development.”
The Peach State’s northern and southern neighbors, Tennessee and Florida, do not have an income tax.
The committee is chaired by Sen. Blake Tillery, R, Vidalia, who proposed one way to replace the income tax funds when he presented the state budget earlier this year.
Georgia does not tax things that other states do, including labor services. Taxing services could bring in $12.2 billion, which could “almost eliminate the income tax overnight,” said Tillery, who is running for lieutenant governor.
Tuesday’s meeting begins at 1 p.m. and will be livestreamed on the General Assembly’s website.
