GOP lawmakers say new proposal shrinks tax hole

ATLANTA - Republican lawmakers say the latest version of a tax proposal they hope to pass next week cuts the budget hole left by the plan by more than $90 million.

House and Senate leadership on Friday announced an agreement on the proposal, which they touted as one that will create jobs and save Georgia taxpayers. The proposal now raises the tax rate from 4.5 percent to 4.6 percent - a move that is estimated to shrink next year's revenue estimate shortfall from $220 million to $128 million.

Georgia's current tax rate is 6 percent.

"We are delivering the one thing Georgians are wanting us to do now," said Speaker David Ralston, who called the tax proposal among the session's most important priorities.

House Majority Leader Larry O'Neal said the number was tweaked "out of an abundance of caution."

"We had finally confirmed it was going to be close to $220 million hit or so to the budget, which we weren't comfortable we could absorb in growth," O'Neal said.

Gov. Nathan Deal signaled his support for the measure, which he tied to a March boost in revenue announced Friday.

"Georgia continues to experience strong revenue growth, a leading indicator of a rebounding economy," said Deal. "This positive trend will aid our ability in the final days of the legislative session to enact tax reforms that will increase our state's competitiveness and build a strong job-creating environment here at home."

Ralston said he is optimistic that the bill will pass during the 40-day legislative session that is scheduled to end Thursday. The measure will have to pass out of committee on Monday and be approved in the House and quickly transferred to the Senate, where it must be read three times before a vote on the final day of the General Assembly.

Senate President Pro Tempore Tommie Williams, who favors eliminating the state income tax, praised the spirit of cooperation among the two chambers and the governor's office. He said this year's proposal is a significant first step towards that goal.

"The tax council doesn't dissolve itself after this year," he said.

The tone on Friday was markedly different from that of a week ago, when Senate infighting threatened to derail a tax plan - much to the consternation of Ralston, who publicly