Atlanta > Georgia Lawmakers Considering Tax Reforms

| February 25, 2015

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ATLANTA — State Representatives are considering a bill that, while reducing state income tax rates, will increase the state sales tax.

The bill, sponsored by John Carson, a Republican from Marietta, would drop the state income tax rate from 6% to 4% during a 3-year period beginning next year.

Conversely, the state’s sales tax rate would increase from the current 4% to 5% beginning on January 1, 2017.

This is part of an effort by many lawmakers to shift the burden of tax revenue from income to consumption, something many feel is long overdue.

“Georgia’s tax system is long overdue for common-sense reform,” said Rep. Carson in a recent interview. “Ultimately, this bill answers the need for an updated tax system that is flatter, fairer and puts our families first.”

The bill would propose the taxation of groceries for the first time in decades, as well as raising the tax on cigarettes.  This effort is part of a trend in more “common-sense” tax standards, including the 2012 change to the motor vehicle tax, or more commonly known as the “birthday tax” on motor vehicles.  The assembly also expanded the income tax exemption for married couples filing jointly.

The bill would also extend the sales tax to include online shopping items such as apps, e-books, music, movies and video games for which the state currently receives no revenue when sold online.  It would also propose a new communications services tax.

Lawmakers are looking to encourage families to save and businesses to invest, noted David Ralston of Blue Ridge in a published quote.  Further, the legislation still allows the use of itemized deductions and personal exemptions.  Food Stamp purchases are also exempt from the sales tax.

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1 Comment on "Atlanta > Georgia Lawmakers Considering Tax Reforms"

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  1. Tank Cashinson says:

    Common Sense in government…what will they think of next?