Georgia GOP Pushes to Eliminate State Income Tax by 2032 Amidst Rising Concerns
Eliminating state income taxes is an appealing prospect for many voters. However, Republicans advocating for this change in various states are grappling with significant concerns. The primary question remains: can such substantial tax cuts be implemented without either raising other taxes or drastically reducing state funding for essential services like education and healthcare?
Georgia has recently joined the ranks of states aiming to abolish its personal income tax. On Wednesday, Republican leaders in the Senate endorsed a proposal to eliminate this tax by 2032. Currently, Georgia’s personal income tax is expected to generate approximately $16.5 billion this year, accounting for 44% of the state’s general revenue.
The political motivations behind this push are evident. Lt. Gov. Burt Jones, a Republican and the leader of the state Senate, has made the elimination of income taxes a key focus of his 2026 gubernatorial campaign. Additionally, State Sen. Blake Tillery, a Republican from Vidalia who spearheaded the committee advocating for the tax’s abolition, is also a contender for the lieutenant governor position.
“This is the first vote that we are going to get to take to address affordability,” Tillery stated.
Despite the enthusiasm, the proposal’s passage remains uncertain. House Republicans in Georgia may prefer a more gradual approach, opting to chip away at the tax incrementally. Republican House Speaker Jon Burns expressed that his primary goal for 2026 is to eliminate property taxes for homeowners, although he remains open to considering the Senate’s proposal.
Governor Brian Kemp, who is in his final year of office, has shown reluctance towards completely abolishing the income tax. While he refrained from commenting on the Senate plan, his spokesperson, Carter Chapman, indicated that Kemp aims to continue reducing taxes and increasing disposable income for Georgians.
The state’s Democratic minority opposes the initiative, arguing that it primarily benefits high-income earners and that the state requires adequate funding to provide essential services.
Multiple GOP-Led States Seek Tax Cuts
Georgia is not alone in this endeavor. States like Iowa, Kentucky, Mississippi, and Missouri are also pursuing the abolition of personal income taxes, joining eight other states that do not impose such taxes. Furthermore, eight additional states, including Georgia, are reducing personal income tax rates this year, according to the Tax Foundation, a Washington, D.C.-based organization generally skeptical of tax increases.
“We’ve seen a lot of states cut their income tax rates in the last four or five years, especially during the COVID-19 pandemic and the recovery period,” noted Aravind Boddupalli, a senior researcher at the Urban-Brookings Tax Policy Center.
Proponents argue that tax cuts enhance a state’s ability to attract new residents and businesses, citing the growth seen in Texas and Florida, both of which do not levy personal income taxes.
“Your income tax is a tax on productivity,” explained Manish Bhatt, a tax analyst at the Tax Foundation. “Taxing productivity can hinder economic growth.”
Front-loading cuts for lower earners
Georgia has already begun reducing income taxes, lowering the top rate from 6% to a flat 5.19%. Republicans are advocating for an additional cut for both individual and corporate taxpayers to 4.99% this year, which would result in an estimated $800 million loss in tax revenue.
The Senate’s plan aims to freeze the corporate tax rate while prioritizing individual tax cuts. It proposes to exempt the first $50,000 of income for single filers and $100,000 for married couples by 2027, a significant increase from the current exemptions of $12,000 and $24,000.
In response to Democratic critiques regarding affordability, the substantial increase in exempt income is central to the Republicans’ argument about stretching financial resources further. According to state figures, around 70% of Georgians reported taxable incomes below $100,000 in 2024.
“It is a plan that gives benefits first to hardworking families,” asserted Tillery.
The initial rate cut, along with the exemption proposal, could reduce Georgia’s revenue by $3.8 billion in the 2027 budget year. Tillery believes the state can manage this by utilizing surplus tax revenue and reverting to financing capital expenditures through borrowing rather than cash. However, these strategies might not sufficiently cover the lost revenue, especially considering the projected $13 billion needed to eliminate the income tax entirely.
Tillery also suggested that revenue could be enhanced by cutting business income and sales tax breaks, advocating for a reduction in “corporate welfare.” However, lawmakers and Kemp have hesitated to limit these incentives in recent years.
Some Tax Cuts Backfired
Not all tax cuts have yielded positive political outcomes. In Kansas, after steep income tax reductions under Governor Sam Brownback over a decade ago, voters reacted negatively to budget cuts, leading to multiple tax increases to address ongoing budget deficits, including the restoration of some income tax cuts. Democratic Governor Laura Kelly won her first term in 2018 by framing her campaign as a referendum on Brownback’s policies.
“State income taxes are only problematic if you fundamentally believe that the services and public investments provided by state governments are not valuable,” commented Matt Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy.
In Missouri, Republican Governor Mike Kehoe and GOP legislative leaders have prioritized phasing out the state’s income tax in the upcoming session. They are considering expanding sales taxes to currently untaxed services to help offset the anticipated revenue loss.
“We want to do this in a smart, efficient way that doesn’t lead the state into a fiscal crisis,” Missouri House Majority Leader Alex Riley told The Associated Press.
However, expanding sales taxes may disproportionately affect lower-income taxpayers. The liberal-leaning Georgia Budget and Policy Institute has estimated that if Georgia does not broaden its sales tax base, the combined state and local sales tax rate would need to increase significantly from the current 7.42% to recover lost revenue.
These developments raise critical questions regarding the viability of income tax elimination plans, even among Republicans. Speaker Burns of the Georgia House expressed his openness to any plan that benefits Georgians.
“But we need to ensure that the details are sound, and it must work,” Burns emphasized. “We must guarantee that we can continue to provide essential services—healthcare, public safety, education, and all the other vital areas we discussed.”
___
Associated Press writer David Lieb contributed from Jefferson City, Missouri.
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Profit Loss
Georgia
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Eliminating state income taxes is an appealing prospect for many voters. However, Republicans advocating for this change in various states are grappling with significant concerns. The primary question remains: can such substantial tax cuts be implemented without either raising other taxes or drastically reducing state funding for essential services like education and healthcare?
Georgia has recently joined the ranks of states aiming to abolish its personal income tax. On Wednesday, Republican leaders in the Senate endorsed a proposal to eliminate this tax by 2032. Currently, Georgia’s personal income tax is expected to generate approximately $16.5 billion this year, accounting for 44% of the state’s general revenue.
The political motivations behind this push are evident. Lt. Gov. Burt Jones, a Republican and the leader of the state Senate, has made the elimination of income taxes a key focus of his 2026 gubernatorial campaign. Additionally, State Sen. Blake Tillery, a Republican from Vidalia who spearheaded the committee advocating for the tax’s abolition, is also a contender for the lieutenant governor position.
“This is the first vote that we are going to get to take to address affordability,” Tillery stated.
Despite the enthusiasm, the proposal’s passage remains uncertain. House Republicans in Georgia may prefer a more gradual approach, opting to chip away at the tax incrementally. Republican House Speaker Jon Burns expressed that his primary goal for 2026 is to eliminate property taxes for homeowners, although he remains open to considering the Senate’s proposal.
Governor Brian Kemp, who is in his final year of office, has shown reluctance towards completely abolishing the income tax. While he refrained from commenting on the Senate plan, his spokesperson, Carter Chapman, indicated that Kemp aims to continue reducing taxes and increasing disposable income for Georgians.
The state’s Democratic minority opposes the initiative, arguing that it primarily benefits high-income earners and that the state requires adequate funding to provide essential services.
Multiple GOP-Led States Seek Tax Cuts
Georgia is not alone in this endeavor. States like Iowa, Kentucky, Mississippi, and Missouri are also pursuing the abolition of personal income taxes, joining eight other states that do not impose such taxes. Furthermore, eight additional states, including Georgia, are reducing personal income tax rates this year, according to the Tax Foundation, a Washington, D.C.-based organization generally skeptical of tax increases.
“We’ve seen a lot of states cut their income tax rates in the last four or five years, especially during the COVID-19 pandemic and the recovery period,” noted Aravind Boddupalli, a senior researcher at the Urban-Brookings Tax Policy Center.
Proponents argue that tax cuts enhance a state’s ability to attract new residents and businesses, citing the growth seen in Texas and Florida, both of which do not levy personal income taxes.
“Your income tax is a tax on productivity,” explained Manish Bhatt, a tax analyst at the Tax Foundation. “Taxing productivity can hinder economic growth.”
Front-loading cuts for lower earners
Georgia has already begun reducing income taxes, lowering the top rate from 6% to a flat 5.19%. Republicans are advocating for an additional cut for both individual and corporate taxpayers to 4.99% this year, which would result in an estimated $800 million loss in tax revenue.
The Senate’s plan aims to freeze the corporate tax rate while prioritizing individual tax cuts. It proposes to exempt the first $50,000 of income for single filers and $100,000 for married couples by 2027, a significant increase from the current exemptions of $12,000 and $24,000.
In response to Democratic critiques regarding affordability, the substantial increase in exempt income is central to the Republicans’ argument about stretching financial resources further. According to state figures, around 70% of Georgians reported taxable incomes below $100,000 in 2024.
“It is a plan that gives benefits first to hardworking families,” asserted Tillery.
The initial rate cut, along with the exemption proposal, could reduce Georgia’s revenue by $3.8 billion in the 2027 budget year. Tillery believes the state can manage this by utilizing surplus tax revenue and reverting to financing capital expenditures through borrowing rather than cash. However, these strategies might not sufficiently cover the lost revenue, especially considering the projected $13 billion needed to eliminate the income tax entirely.
Tillery also suggested that revenue could be enhanced by cutting business income and sales tax breaks, advocating for a reduction in “corporate welfare.” However, lawmakers and Kemp have hesitated to limit these incentives in recent years.
Some Tax Cuts Backfired
Not all tax cuts have yielded positive political outcomes. In Kansas, after steep income tax reductions under Governor Sam Brownback over a decade ago, voters reacted negatively to budget cuts, leading to multiple tax increases to address ongoing budget deficits, including the restoration of some income tax cuts. Democratic Governor Laura Kelly won her first term in 2018 by framing her campaign as a referendum on Brownback’s policies.
“State income taxes are only problematic if you fundamentally believe that the services and public investments provided by state governments are not valuable,” commented Matt Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy.
In Missouri, Republican Governor Mike Kehoe and GOP legislative leaders have prioritized phasing out the state’s income tax in the upcoming session. They are considering expanding sales taxes to currently untaxed services to help offset the anticipated revenue loss.
“We want to do this in a smart, efficient way that doesn’t lead the state into a fiscal crisis,” Missouri House Majority Leader Alex Riley told The Associated Press.
However, expanding sales taxes may disproportionately affect lower-income taxpayers. The liberal-leaning Georgia Budget and Policy Institute has estimated that if Georgia does not broaden its sales tax base, the combined state and local sales tax rate would need to increase significantly from the current 7.42% to recover lost revenue.
These developments raise critical questions regarding the viability of income tax elimination plans, even among Republicans. Speaker Burns of the Georgia House expressed his openness to any plan that benefits Georgians.
“But we need to ensure that the details are sound, and it must work,” Burns emphasized. “We must guarantee that we can continue to provide essential services—healthcare, public safety, education, and all the other vital areas we discussed.”
___
Associated Press writer David Lieb contributed from Jefferson City, Missouri.
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Trends
Profit Loss
Georgia
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