GEORGIA – In Georgia, a bill passed in 2022 that reduces the state income tax each year until it reaches 4.9% by 2029. Governor Brian Kemp is looking to amend the bill to speed up the state’s income tax cut.
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Sally Hannah lives in Camden County and is frustrated with the rising cost of living.
“It’s just going up and up and up,” Hannah said.
She was leaving the grocery store after spending hundreds of dollars on food for herself.
“I usually probably spend $250 or $257 a week for one person,” Hannah said. “When I just shopped last week, things were higher today, than they were last week on the same exact items.”
In 2024, Georgia lawmakers dropped the state’s income tax from 5.75% to 5.49%. Experts said this could save a family of four earning $75,000 income about $650 per year.
The income tax reduction is a part of House Bill 1437, signed into law by Kemp in 2022. The bill is set to decrease the income tax each year until it gets down to 4.9% by 2029.
The governor wants to speed the process up by amending this bill and lowering this year’s income tax rate to 5.39% while continuing the year-to-year decrease.
Hannah said the thought of this decrease sounds promising.
“I mean we’re paying taxes for it when we get it, and we’re paying taxes when we pay for things. So, it’s great to be able to get any more money than you possibly can get,” Hannah said.
Some critics of the bill have concerns about what this will do to the state’s long-term state finances if it passes.