Gov. Brian Kemp is expected to sign a bill passed last week by the legislature that will cut income taxes for most Georgians.
It will be the second income tax cut in three years in Georgia. But the effects of the cuts will be relatively small. It will save about $100 a year for a married couple filing jointly.
Under the bill, the standard deduction for a single taxpayer would increase by $800 and for a married couple by $1,100. Georgians who are over 65 or blind would get an additional $1,300 deduction.
The state Senate voted 35-15 last week in favor of the cuts. The House previously approved the bill, so it goes to Kemp's desk to await his signature.
Lawmakers who supported the bill said the state can easily afford the cut. Sen. Steve Gooch of Dahlonega, the Senate Majority Whip said the money should be returned to taxpayers.
“We’re not in a recession, our economy is growing, our budget is the highest it’s been in the history of our state, we have funds coming from D.C.,” Gooch told The Atlanta Journal-Constitution. “Why would we not want to give the money back to the people who sent it to us, to be good stewards of their funds? This is not our money, it’s their money.”
But some Democrats said the cuts are so small, most taxpayers won't notice them, and the money could be better spent helping Georgians who need it.
The bill was stalled in the Senate after Congress put language in the federal $1.9 billion coronavirus relief package that prohibited states from using any of the funds to cut state taxes. Kemp and other state officials, angered by the provision, wrote to President Biden opposing the prohibition.
Last week, U.S. Department of the Treasury said states could cut taxes as long as it didn't use COVID relief funds to pay for it.
The tax cut will cost the state $140 million a year.
http://accesswdun.com/article/2021/3/990112/kemp-expected-to-sign-bill-cutting-state-income-tax