Friday, March 4, 2016

Lawmakers propose decrease in state's top marginal tax rate

The Atlanta Journal-Constitution reports that two bills under consideration at the Georgia General Assembly would slightly reduce the state's longstanding top marginal income tax rate of 6 percent.  They also report that the governor would rather build up the state's reserve fund than approve a broad tax rate cut.  The proposals may not make it to the floor for a vote because it would put legislators in an awkward position:
It’s an election year — tax-cut proposals advance in Georgia 
STATE & REGIONAL GOVT & POLITICS | By James Salzer - The Atlanta Journal-Constitution 
Updated: 6:28 p.m. Thursday, Feb. 25, 2016 | Posted: 6:05 p.m. Thursday, Feb. 25, 2016
#It’s an election year, and that means lawmakers probably can’t end the 2016 session without some kind of tax cut, or at least a last-minute debate on one.
#And state Senate Finance Chairman Judson Hill, R-Marietta, has just the ticket for election-wary politicians.
#The Senate could vote as early as Monday on proposals from Hill. One, Senate Resolution 756, is a proposed constitutional amendment that would make a small reduction in the state’s 6 percent maximum income tax rate if the state has relatively full reserves and revenue collections continue to rise.
#The other, a reworked House Bill 238, would cut the maximum state income tax from 6 percent to 5.4 percent, reduce the number of itemized deductions, raise personal exemptions and eliminate the state’s corporate net worth tax that companies pay.
#Both measures overwhelmingly passed his committee this week. Hill calls them a conservative approach to tax reform. “Would I like to do more?” Hill said. “I would, but something is better than nothing.”
#Gov. Nathan Deal warned lawmakers off any major tax cut bills this session, saying his goal was to build the state’s reserves to $2 billion before he leaves office. There has been little talk of tax cuts this session beyond the usual special-interest breaks...

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