ATLANTA — Efforts are underway to eliminate Georgia’s state income tax, a move that could create a $16 billion hole in the state budget.
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The proposed elimination of the state income tax is being led by state Sen. Blake Tillery, who is also running for lieutenant governor.
“The end goal is already clear: Elimination of the personal income tax in Georgia,” Tillery told Channel 2’s Richard Elliot.
The initiative is supported by current Lt. Gov. Burt Jones, who has also made it a cornerstone of his campaign for governor.
“If we want to continue to stay competitive here in the state of Georgia and continue to be the number one state to do business, we’ve got to be looking for ways to keep competitive,” Jones said.
The state income tax currently generates $16.2 billion annually, funding essential services such as education and law enforcement.
Democrats, including state Sen. Nan Orrock, have expressed willingness to listen but raised concerns about the revenue gap.
“How are we going to fund things? Essential services in the state of Georgia? The schools, the teachers and the payroll?” state Sen. Ed Haribson said.
The study committee, chaired by Tillery, is tasked with investigating possible alternatives to replace the lost revenue. Georgia lawmakers are particularly concerned about staying competitive with other Southeastern states like Texas, Tennessee and Florida, which do not have a state income tax.
Those states generate revenue through other means, such as corporate income taxes, franchise taxes, fees, and toll roads.
Tillery said he has been developing this plan for several years, acknowledging the need to find alternative revenue sources to compensate for the potential loss. This is the purpose of the study committee, which aims to explore viable solutions.
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