Some are tiny, but useful first steps. Some are serious and useful in their own right. Georgia Republicans are proposing the latter.
The State currently has a graduated income tax with a top rate of 5.5% on income above $10,000 (except singles; they pay 5.5% on income above $7,000) and standard income tax deductions of $4,600 for single filers, $3,000 each for married filing separately, and $6,000 for married filing jointly.
The proposal, led by State House Ways & Means Chair Shaw Blackmon (R-Bonaire), envisions serious changes. It reduces and simplifies the State’s income tax rate to a single 5.25% rate regardless of income level. It increases the standard income tax deductions to $12,000 for single filers and $24,000 for married couples, a move that appears also to eliminate the marriage penalty inherent in the current deduction. [A] family of four would not pay state income tax on their first $30,000 of income compared with the present first $500 to $1,000 of income, depending on filing status.
Now that’s a tax cut that a mother can love. And fathers and singles.