Could Georgia Really Eliminate State Income Taxes?

(The Center Square) – The chairman of a Senate committee studying how to eliminate Georgia’s income tax said Tuesday the state will take the tax to zero.

Georgia’s southern and northern neighbors, Florida and Tennessee, already do not have a state income tax, along with seven other states. North Carolina and South Carolina lawmakers are working toward zero, Grover Norquist, president and co-founder of Americans for Tax Reform, told the city.

Lt. Gov. Burt Jones said Georgia must take the opportunity to lead the South and not lag behind.

“The days of government picking winners and losers are over, and I believe it is time for us to focus on eliminating Georgia’s income tax,” Jones said. “I believe that Georgians know how to spend their own money better than the government does, I hope my colleagues agree.”

Sen. Blake Tillery, R-Vidalia, said the “die has been cast.”

“We will be going to zero or there will be other people in these seats taking the state income tax to zero,” he said.

The question is how and when, Tillery said. The state takes in $16 billion annually in income taxes.

Sen. Nan Orrock, D-Atlanta, said the state has many needs, including a 7,000-person waiting list for services for children with profound disabilities. Uncertainty about cuts on the federal level is also a concern, she said.

“We’re going to be highly impacted as states, as an example reducing our FEMA money, with the state carrying the heaviest burden,” Orrock said. “That’s just one example and we’re a state that experienced a 100-year storm that charged through the southeast and damaged our economy and really hurt people working in agriculture.”

Norquist said North Carolina has brought in more money every year as it has reduced its tax rates.

“When you attract where more people in the state and more businesses into the state and more investment into the state, you end up with more work, money and individuals earning it,” he said.

States do not have to wait until they are at a zero income tax rate to see the benefits, according to Norquist.

“Once you’ve committed to go to zero, you begin the benefits of getting to zero,” Norquist said. “Because if you do it credibly and the world goes yes, this is happening, people investing know this is coming and can start to say, we’re going to start putting things, start building things in that state because we trust that it’s going to happen and again, we’re investing for 50 years, not just for the next few.”

Other members of the committee are Senate Majority Leader Jason Anavitarte, R-Dallas; Sens. Greg Dolezal, R-Cumming, Ed Harbison, D-Columbus, Chuck Hufstetler, R-Rome, Steve Gooch, R-Dahlonega, John Kennedy, R-Macon, Michael “Doc” Rhett, D-Marietta, Larry Walker, R-Perry, and Sen. Sam Watson, R-Moultrie.

Tillery said the date for the next meeting has not been set.