Lawmakers: Reject Risky Flat Tax, Support a Georgia Work Credit Instead
It only takes 30 seconds and 2 quick steps to write to your Georgia legislators and help make sure 2022 tax changes put money in the pockets of Georgia families rather than providing massive tax cuts to the wealthy.
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Georgia’s tax code should be able to fund core services and programs by ensuring every Georgian pays their fair share. Unfortunately, Georgia lawmakers have consistently advanced legislation that skews the tax code in favor of the wealthy.
Members of the Senate have made a number of positive changes to HB 1437 that would make Georgia’s tax code fairer, including adding a non-refundable state Earned Income Tax Credit and repurposing subsidies that primarily go to out-of-state corporations through the film tax credit.
However, as the legislation moves through the process, lawmakers should reconsider the legislation’s ultimate shift to a flat tax that would occur in 2032. Although Georgia only moves toward the flat tax if certain revenue goals are met, the state would be wise to avoid the lengthy proposed phase-in period by preserving graduated income tax rates.
Lawmakers can improve HB 1437 by abandoning the proposed flat tax in favor of simplified graduated brackets, eliminating state itemized deductions to fund an increase in the standard exemption offered to all Georgians and making the Earned Income Tax Credit refundable.