The Georgia House passed a measure (House Bill 329) to set the state income tax rate for all Georgians at a “Flat” 5.4 percent. The flat income tax would replace the current graduated system with rates that range from 1 to 6 percent.
A flat tax or flat tax rate is a system with a constant marginal rate, usually applied to individual or corporate income.
While proponents laud the bill’s tax cut and “pro growth” intent, opponents argue it would raise taxes on some low-income families.
Perhaps in anticipation, the bill would also create an earned-income tax credit for low-income Georgians to make up for the higher rates they would pay, and it would eliminate a provision in state law that allows Georgians who itemize their deductions when they fill out their tax returns to write off their state income tax payments.
The bill now goes to the Senate, which has supported suggested flat tax reform in the past.
Join our email list to stay connected.