Georgia Budget and Policy Institute: Lawmakers Might Come to Regret Georgia’s Risky Tax Plan
ITEP Work in ActionBill Analysis: House Bill 918 Substitute (LC 34 5383-ECS);
Feb. 22, 2018
Georgia leaders are now rushing a massive tax package through the state’s General Assembly with limited debate and without a clear tally of the plan’s true cost. Gov. Nathan Deal and legislative leaders introduced a revised tax package Feb. 20, 2018, designed to reduce state revenues by an estimated $1.4 billion a year once fully phased-in.[1] The substitute to House Bill 918 this week is in response to recent news that federal tax changes signed into law by President Donald Trump in December could generate a lot of new state revenue, with some estimates reaching about $1 billion a year. The state’s new plan includes cuts to Georgia’s personal and corporate income tax rates, a revived sales tax break on jet fuel and a doubling of the state’s standard deduction.