Gov. Nathan Deal, along with Lt. Gov. Casey Cagle and House Speaker David Ralston, today outlined updates to HB 918, which addresses state tax code. The legislation, sponsored by Rep. Chuck Efstration, now combines the 2017 Internal Revenue Code (IRC) bill, HB 821, with 2018 IRC updates. It also addresses the state revenue projections resulting from the Federal Tax Act.
HB 918 would double the standard deduction for Georgia taxpayers for all filing statuses, effective Jan. 1, 2018. It would also reduce the income tax rate for individuals and businesses from 6 percent to 5.75 percent effective Jan. 1, 2019. Finally, the legislation includes a provision further reducing the tax rate to 5.5 percent, effective Jan. 1, 2020. This reduction would require approval of the General Assembly and signature of the governor in order to take effect.
The bill will also help our state be more competitive by eliminating the sales tax on jet fuel, which will encourage airlines to fly additional direct flights from Georgia to destinations around the globe.
“Taxpayers have already started to experience the positive effects of federal tax reform here in Georgia and throughout the country,” said Deal. “Our state is also projected to benefit significantly in the coming years. The legislation presented today is a result of ongoing dialogue between House and Senate leadership and addresses Georgia’s projected windfall while balancing the state’s fiscal health and protecting our AAA bond rating.
“This bill keeps more of taxpayers’ hard-earned money in their pockets by doubling the standard deduction and reducing income tax rates. It will save taxpayers more than $5 billion over the next five years. Doubling the standard deduction will also allow Georgia filers to take fuller advantage of the newly enhanced federal standard deduction. Further, these combined changes mark one of the biggest income tax cuts in state history, and does so in a fiscally responsible manner. The standard deduction was last increased in 1981. The individual rate was set at 6 percent in 1937 and has not changed since, while the corporate rate has also remained at 6 percent since 1969. I’m confident HB 918 will be passed by the General Assembly quickly and immediately transmitted to my desk. The sooner I sign this landmark reform legislation, the sooner taxpayers may file.”
“This historic tax cut lowers Georgia’s income tax rate for the first time ever, returning significant savings to millions of families across our state,” said Cagle. “Most importantly, this framework sets the stage for continued reductions – building on the Trump administration’s tax reform to allow Georgians to keep more of what they earn.”
“I am committed to keeping the tax burden on Georgians as low as possible,” said Ralston. “This measure is yet another example of the General Assembly working with Governor Deal to empower families to save more of their money. I appreciate the Governor’s leadership and the cooperation between the House and the Senate in developing this income tax cut legislation. I look forward to it moving quickly through the legislative process.”
ATLANTA – Speaker David Ralston (R-Blue Ridge) attended President Trump’s infrastructure announcement at The White House this morning. Speaker Ralston was one of several local and state elected officials invited to participate in a series of discussions with the President as well as members of his cabinet and senior staff about the plan and the infrastructure needs facing our nation.
“I appreciate President Trump’s emphasis on public-private partnerships, as well as rural areas of America, as we look to address the nation’s infrastructure needs,” said Speaker Ralston. “Much like his Tax Cuts & Jobs Act, this measure will make a real difference in projects of profound economic importance like the Savannah Harbor Expansion Project or long-overdue efforts like expanding broadband infrastructure into rural areas. This is another example of President Trump focusing on creating jobs and expanding economic opportunity across our country. I am honored to represent the State of Georgia at this important announcement.”
President Trump’s infrastructure plan looks to leverage the power of public-private partnerships to improve the nation’s infrastructure including transportation, water/sewer and other critical needs like broadband internet access. More details on the President’s plan are available on The White House website at http://www.whitehouse.gov.
BKP Speaks with House Speaker David Ralston for a Legislative Session Wrap-up.