ATLANTA — A Georgia state lawmaker says he is filing legislation aimed at reducing taxes for Georgia residents.
State Sen. Judson Hill, R-Marietta, contents the Tax Relief Act of 2016 would change the personal income tax to a flat 5.4 percent and increase personal exemptions per person by $2,000. The measure would also will also simplify administrative measures and reporting for small businesses that currently make up approximately 60 percent of Georgia’s businesses, to eliminate the corporate net worth tax, Hill contends.
“We need to do all we can to reduce the tax burden on Georgia’s hardworking families, and my Tax Relief Act does just that,” Hill said in a news release. “Revising our current tax law would allow Georgians to keep more dollars in their pockets and make their own decisions on whether those dollars should be saved, invested or spent.”
The Tax Relief Act of 2016 would also limit some itemized deductions for itemizers, but would still preserve all deductions for charitable contributions, medical expenses and most mortgage interest and property tax deductions. Finally, it would eliminate both the marriage penalty and corporate net worth tax while maintaining the current sales tax base and rate.
Georgia’s current individual income tax is 6 percent, which is the highest rate among the southeastern United States. A shift to 5.4 percent from 6 percent would bring Georgia’s rate below North Carolina and South Carolina.