In recent years, Georgia has become a focal point of tax reform, which includes changes to its state income tax structure. One of the most noteworthy moves has been the decision to decrease the state income tax rate, which would benefit both residents and businesses in the state.

Georgia Assembly just voted to decrease the state income tax (HB111): Do they deserve praise?

But is this the best We the People (“WTP”) of Georgia can get? Do the GA Representatives and Senators deserve credit for these measures, especially given the current environment with Donald J. Trump as our President?

Background on Georgia’s income tax structure

Georgia, like most states that tax WTP, had been using a progressive form of state income tax. The more income an individual earns, the higher the tax rate they pay. In other words, people are penalized and forced to pay more into the system for growing in their careers or businesses. For years, Georgia had a tax bracket structure with rates ranging from 1% to 5.75%. The highest rate applied to income above a certain threshold has been around $7,000 for individual filers in recent years and around $10,000 for joint filers.

While the state’s income tax rates were relatively moderate compared to other states that still charge people an income tax, many argued that Georgia’s tax burden still put too big a strain on middle-class families and businesses, especially since Georgia is a RED (i.e., majority Republican) state, with a governor proclaiming the state as the “#1 state to do business”. To encourage growth and attract new investment, state lawmakers began discussing ways to reduce taxes while still funding vital public services.

One way to encourage growth and investment would be to completely eliminate state income tax. Neighboring states Tennessee and Florida have no state income tax, while North Carolina, South Carolina, and Alabama are much lower than Georgia. Mississippi just passed a bill to completely eliminate the state tax, matching Tennessee’s and Florida’s conservative, WTP-focused lead.

The Tax Cut: What has Changed?

In 2023, Georgia’s Governor Brian Kemp signed into law a tax cut aimed at reducing the state’s income tax rate. The new law gradually lowers the top individual income tax rate from 5.75% to 5.25%. This reduction is part of a broader strategy to make Georgia more competitive in attracting businesses and fostering economic growth.

In 2024, Georgia simplified its tax system by consolidating its six tax rates into one flat tax rate of 5.39%.

The flat rate was initially set to be 5.49%, but a July 2024 bill decreased it by 0.10%. This change affected income earned in 2024, which is reported on state tax returns in 2025.

Just this past week, the Georgia Assembly practically hurt themselves patting themselves on the back for lowering it an additional 0.10%, down to 5.19% (HB111). Wow, what a bunch of “limited government” patriots in our supposedly Republican majority legislature…NOT!

At this rate, it will take 54 years for GA to end our state tax!

Is there an impact on the State Budget?

Any tax decrease naturally raises questions about its impact on the state budget and funding for “essential services”. Critics of the tax cut argue that reducing tax revenue could hurt public services like education, healthcare, and infrastructure.

However, the historicity of tax cuts include greatly improved economic growth, which leads to a broader tax base and can offset any initial shortfalls. Tax cuts are part of a strategy to boost business activity, create jobs, and encourage people to stay in Georgia, all of which generate additional tax revenue over time and make Georgia the #1 state to live, not just do business.

Unfortunately, despite the goal of cutting state taxes, the Assembly still spends like drunken sailors, and they just passed a bloated budget reminiscent more of a progressive, democrat party than a conservative, republican-led one. Additionally, they are sitting on an $11 billion surplus, not counting a separate $5.5 billion rainy day fund! It is time for the state to give us our money back and set a course for a true conservative, RED state budget and stop spending so much money on so many things. We need a true “DOGE” in Georgia. SB28 is a good start, but they haven’t even passed this bill, and truth be told, this bill does not go far enough.

Future outlook: will the tax cuts continue on this ridiculously slow pace?

As Georgia’s economy continues to grow, WTP demand additional opportunities for further tax reductions in the future. Governor Kemp and other state leaders have signaled their intention to continue lowering taxes if the state’s fiscal health remains strong, but they will be long gone before we ultimately do what most of our TRUE conservative neighbors have done and ELIMINATE the state tax.

Kemp and his Assembly sycophants complain that any future tax cuts will likely be contingent upon maintaining balanced budgets and ensuring the state’s ability to fund important public services. Balanced budgets are required by the GA Constitution, so the assembly deserves very little credit for maintaining them. Instead, the state assembly spends money in an ‘attempt’ to benefit a broad range of residents. This is not the conservative, nor constitutional, approach. The correct approach is to much more quickly eliminate the tax, which will ultimately benefit ALL Georgians, including those who need help the most. Freeing up money for charities and religious institutions to help those in need is the better approach. To get there, Senator Colton Moore put forth a proposal (SB168) to eliminate the state income tax in five (5) years. Not as good as immediate, but still a worthy effort. The GA senate did not even let this bill have a hearing!

Conclusion

Georgia’s decision to reduce its state income tax rate is a significant step toward creating a more attractive economic environment for businesses and residents. While the immediate effects of a slow reduction have modest impact to help relieve the tax burden on Georgians, the broader concerns of a slow reduction are potentially far-reaching. Maintaining a state income tax after Kemp leaves office opens the possibility that a new regime will decide to raise the tax. It will also convince people who support high taxes that Georgia is a place to relocate to (in other words, it will attract progressive liberals who love to tax the “rich” and benefit from expanded government programs). Americans who appreciate freedom over tyranny will also be less likely to relocate to Georgia. This slow reduction, and possible result of a complete shift back towards higher taxes, will also convince businesses to relocate from the high tax rates.

We the People demand lowering the state spending and returning our tax dollars to us. We can better direct the funding to support our families and help those in need. The government is a poor steward of helping people. Charities and religious institutions have historically proven to be better alternatives for directly helping people by eliminating the red tape/middleman, which is how we end up with government bloat, waste, and fraud. It is well past time for Georgia to join our conservative neighbors and eliminate the state income tax immediately.