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Monday August 31st, 2015 12:52AM

Capping of state income tax takes first step

By The Associated Press
ATLANTA - The Georgia state Senate approved a resolution on Monday to cap the state's income tax at its current rate.

Georgia senators voted 42-11 to prohibit the General Assembly from increasing the state's income tax above 6 percent.

The legislation is sponsored by Senate President Pro Tem David Shafer, R-Duluth. The resolution would also block state lawmakers from imposing any new state income taxes.

Shafer told the Atlanta Journal-Constitution that he'd like to see the state income tax reduced to keep Georgia competitive with neighboring states.

"Every one of our neighbors has a lower income tax than Georgia, and two states do not tax earned income at all," Shafer said in a statement. "Capping the state income tax will keep Georgia competitive. We will be the only Southeastern state that constitutionally prohibits income tax increases." Shafer added that he favors taxing consumption over taxing productivity.

Senate Resolution 415 must pass the House before being presented to voters for a statewide ballot referendum. The resolution is co-sponsored by Senate Majority Leader Ronnie Chance, R-Tyrone and members of the state Senate Republican Caucus.
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