Senate Resolution 8, a proposal that would create a constitutional amendment to phase out the Georgia State Income Tax, is now in the Senate Finance Committee where it is under consideration.
State Sens. Brandon Beach (R-Alpharetta), Barry Loudermilk (R- Cassville) and John Albers (R-Roswell) are among the co-signers on the resolution proposed by Sen. Josh McKoon (R-Columbus).
Other co-sponsors include Sens. Butch Miller (R- Gainesville), Steve Gooch (R- Dahlonega), Judson Hill (R-Marietta), Chuck Hufstetler (R-Rome), Mike Dugan (R-Carrollton), and Hunter Hill (R-Smyrna).
Beach, who won his Senate District 21 seat in a special election in January, said the proposal would help economic development in the state and help create much-needed jobs.
“I think it will promote job creation, and give us an even playing field with those who don’t have one. When we do compete we will win,” Beach said Friday.
The Georgia income tax rate is 6 percent. The plan would phase out the state income tax by .5 percent each year until it is eliminated, if approved by voters. SR 8 would be completed by the year 2027, if approved.
“In order to continue developing Georgia’s economic competitiveness and promoting job creation, we must move toward eliminating the income tax,” said Sen. Beach. “I intend on working diligently to pass this important resolution which will allow hard working Georgians to take home more of their pay check.”
Beach pointed to several states that do not have an income tax including Florida, Tennessee, Texas, Wyoming, Washington, New Hampshire, Nevada and Alaska.
Other states have the abolition of their state income tax under consideration, including North Carolina, Louisiana and Nebraska.
“We compete in economic development with Texas and Florida, neither of which have a state income tax. Our neighbor to the north, Tennessee does not have one either,” Beach said. “Right now we win when we compete with states such as California, which has a rate of 13.5 percent. With this reduction we could compete more easily.”
Amendments to the Georgia Constitution may be introduced in either the House of Representatives or the Senate. An amendment must be approved by a two-third majority of each legislative chamber in order for it to be placed on the ballot for voter approval.