Georgia Budget and Policy Institute: How Georgia’s Tax Code Contributes to Racial and Economic InequalityITEP Work in Action
Today, state and local taxes consume a greater share of income earned by Georgians in poverty—who are more likely to be people of color—while the richest pay a far lower share of their income in taxes. As such, Georgians who are among the bottom 20 percent of income earners, those who make less than $20,000 per year, pay approximately 10.4 percent of their income in state and local taxes, while those in the top 1 percent, making more than $481,000 per year, pay approximately 7 percent of their income in state and local taxes, a difference of nearly 33 percent.
As Georgians make more in annual income, they can expect to pay a lower share of their overall earnings in state and local taxes. Due to historic racist policies and practices that have contributed to less wealth and lower incomes for people of color, this means Georgia’s tax code inequitably taxes people of color while giving an advantage to predominantly white filers of means.