{"id":2530737,"date":"2026-01-06T20:00:58","date_gmt":"2026-01-07T01:00:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/georgia-republicans-outline-proposal-to-phase-out-state-income-tax\/"},"modified":"2026-01-06T20:04:22","modified_gmt":"2026-01-07T01:04:22","slug":"georgia-republicans-outline-proposal-to-phase-out-state-income-tax","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/georgia-republicans-outline-proposal-to-phase-out-state-income-tax\/","title":{"rendered":"Georgia Republicans outline proposal to phase out state income tax"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgeorgia-republicans-outline-proposal-to-phase-out-state-income-tax%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2530737&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Georgia Republicans unveiled a plan to phase out the state income tax, starting by exempting the first $50,000 of income per individual ($100,000 for married couples) and eventually eliminating income taxes for higher earners and businesses. Sponsor Sen. Blake Tillery said the first year would be funded by a $1.8 billion surplus and about $1 billion from shifting cash to bonds, and future losses would be offset in part by cutting roughly $30 billion in special-interest and corporate tax credits. The plan pledges not to raise the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/newsom-california-democratic-lawmakers-claim-true-pro-life-agenda-in-budget-announcement\/\" title=\"Newsom, California Democratic Lawmakers Claim \u2018True Pro-Life Agenda\u2019 In Budget Announcement\">state sales tax<\/a>, create a statewide property tax, or force deep cuts to services, though state income tax currently brings in about $15.7 billion a year-roughly half of Georgia&#8217;s revenue used for education, health care, public safety, and infrastructure. Supporters, including Lt. Gov. Burt Jones&#8217;s committee and economists like Arthur Laffer, argue the move would spur growth (noting nine states have no <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-states-can-lead-america-back-towards-lower-taxes-and-less-government\/\" title=\"How ...s Can Lead America Back Towards Lower Taxes And Less Government\">personal income tax<\/a>). Opponents-including committee Democrats Nan Orrock and Ed Harbison and the Georgia Budget and Policy Institute-contend the proposal would disproportionately benefit high earners and worsen affordability for middle- and lower-income residents. Governor Brian Kemp has not yet signaled whether he will back the proposal.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Georgia Republicans outline proposal to phase out state income tax<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2465024\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/republicans\/\">State Republicans<\/a> in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/georgia\/\">Georgia<\/a> have released a new plan that would eliminate state income <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/taxes\/\">tax<\/a> for the majority of residents.<\/p>\n<p>State Sen. Appropriations Chairman Blake Tillery announced the plan, which would end income tax for the first $50,000 an earner makes, on Tuesday. Married couples would not pay income tax on their first $100,000. Eventually, income taxes for higher earners and businesses would also be eliminated.&nbsp;<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/4407985\/iran-rolls-out-7-dollar-payments-to-quell-affordability-protests\/\">Iran rolls out $7 payments to quell affordability protests<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/4407374\/oecd-deal-us-companies-global-tax-rate\/\">OECD deal excludes US companies from 15% global tax rate<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/4364942\/february-social-security-direct-payment-994-out-in-25-days\/\">February Social Security direct payment worth $994 goes out in 25 days<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>The report by Tillery emphasized that the income tax plan would not raise the state sales tax, create a statewide property tax, nor mandate deep cuts to state services.&nbsp;<\/p>\n<p>Lt. Gov. Burt Jones created the tax policy committee last summer to explore options for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/10-states-are-in-the-process-of-eliminating-their-personal-income-tax\/\" title=\"10 ...s Are in the Process of Eliminating Their ...\">eliminating income tax<\/a>. The committee is set to meet Wednesday to review and adopt the report.&nbsp;<\/p>\n<p>Eliminating state income tax, which rakes in roughly $15.7 billion per year, about half of all state funds, could have a sizable impact on the state&rsquo;s General Fund that allocates money for education, healthcare, public safety, and infrastructure.&nbsp;<\/p>\n<p>Tillery said the first year of the plan is already funded by the $1.8 billion in surplus revenue from 2025 and another $1 billion created by moving state funding from cash to bonds.&nbsp;<\/p>\n<p>After that, Tillery said reducing or eliminating roughly $30 billion allocated toward special-interest and corporate tax credits could help make up for lost income tax.&nbsp;<\/p>\n<p>Additionally, the state is starting in a position of strength. Georgia&rsquo;s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/fred.stlouisfed.org\/series\/GANGSP\">gross domestic product has surged <\/a>over the last 10 years, with an increase of nearly $3 billion.<\/p>\n<p>While Jones and Tillery push for their plan to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/national-sales-tax-will-hurt-struggling-americans-democratic-congressmen\/\" title=\"National ... Will Hurt Struggling Americans: Democratic Congressmen\">eliminate income tax<\/a>, Gov. Brian Kemp (R-GA) hasn&rsquo;t indicated whether he will back it or not.&nbsp;<\/p>\n<p>Economist Arthur Laffer, who served on President Ronald Reagan&rsquo;s Economic Policy Advisory Board, <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.wabe.org\/georgia-lawmakers-are-planning-to-eliminate-the-state-personal-income-tax-heres-what-to-know\/\">appeared before the committee<\/a> to urge lawmakers to eliminate income tax.&nbsp;<\/p>\n<p>&ldquo;You can get rid of your income tax in one year if you fold your income tax into your sales tax and get rid of your sales tax expenditures,&rdquo; Laffer said. &ldquo;And that would incredibly jettison your economic growth.&rdquo;<\/p>\n<p>Nine other states have <a href=\"https:\/\/amzn.to\/3YuVZYV\" >successfully eliminated personal income tax<\/a>, including neighboring Florida. However, while Georgie&rsquo;s state sales tax rate sits at 4%, most of the other income-tax-free states rely on 2% to 3% higher sales tax rates to help balance the budget.<\/p>\n<p>Georgia Public Policy Foundation President and CEO Kyle Wingfield also spoke in favor of the tax elimination and said in doing so, lawmakers are telling Georgians, &ldquo;Your money is going to go farther in the future than it used to.&rdquo;<\/p>\n<p>Two of the three Democrats on the committee, state Sens. Nan Orrock and Ed Harbison, are the main critics of the plan, arguing it would primarily benefit high earners.&nbsp;<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/congressional\/4408404\/georgia-sets-march-special-election-to-fill-marjorie-taylor-greene-seat\/\"><strong>GEORGIA SETS MARCH SPECIAL ELECTION TO FILL MARJORIE TAYLOR GREENE&rsquo;S SEAT<\/strong><\/a><\/p>\n<p>&ldquo;Republicans want to jack up taxes on the middle class to give rich people a massive handout,&rdquo; they said in a statement following the committee meeting. &ldquo;At the end of the day, they&rsquo;re making the affordability crisis worse and saying they&rsquo;re doing you a favor. Democrats on this committee are appalled by this wrongheaded, disastrous proposal.&rdquo;<\/p>\n<p>Alongside Orrock and Harbison sits the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/gbpi.org\/breaking-the-bank-eliminating-the-state-income-tax-harms-most-georgians-and-increases-the-cost-of-living\/\">Georgia Budget and Policy Institute<\/a>, which echoed the senators&rsquo; opinions that the plan would disproportionately affect the middle class.&nbsp;<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Georgia GOP plan to phase out state income tax<\/p>\n","protected":false},"author":4130,"featured_media":2530738,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/01\/AP25224603977308.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[38510,38168,49370,41726,37919],"class_list":["post-2530737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-fiscal-policy","tag-georgia-gop","tag-income-tax","tag-state-politics","tag-tax-reform"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/01\/AP25224603977308.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/4130"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2530737"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530737\/revisions"}],"predecessor-version":[{"id":2530741,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530737\/revisions\/2530741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2530738"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2530737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2530737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2530737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}