During the 2018 Legislative Session, the Senate worked diligently to improve the lives of Georgians across the state. This year, we made history and passed the largest income tax reduction in over 75 years through House Bill 918. These updates to Georgia’s tax code will be the first to the individual income tax rate since 1937 and the first to the business rate since 1969.
Over the next five years, HB918 is estimated to place an additional five billion dollars into the pockets of the taxpayer. The income tax rate will be reduced in tiers, with the first decrease taking effect on January 1, 2019, decreasing the current 6% rate to 5.75%. The second tier will be effective on January 1, 2020, which will further decrease the 5.75% rate to 5.5%. This additional decrease is subject to approval by the Georgia General Assembly. In addition to income tax rate reductions, the legislation will also double the standard deduction for taxpayers of all statuses. For example, a single person filing would see their deduction increase from $2,300 to $4,600, and a head of household and married person filing a joint return would increase from $3,000 to $6,000.
Once in place, these reductions will allow families across the state to keep more of the hard-earned cash they deserve. A family of four with a household income of $50,000 will see a 16% income tax cut, and a family of four with a household income of $150,000 will see a 10% income tax cut.
I want to thank Governor Nathan Deal, Lt. Governor Casey Cagle, and all my fellow legislators who worked day and night to pass this legislation into law. Placing a focus on saving the individual taxpayer a little more money can go a long way, and I am proud of each of our state’s elected officials who played a part in making this tax cut a reality.
This year, and for the fifth consecutive year, Georgia was named the “#1 state to do business” in the country. It is such an honor for our state to hold this distinction, but we did not gain this title by accident. Implementing pro-business policies with a focus on economic growth has been a top legislative priority for many years, and especially since the 2008 recession. I am glad that our policymaking has made such a considerable impact, and I am sure that Georgia has nowhere to go but up from here.
While our time under the Gold Dome in 2018 may be in the rearview, that doesn’t mean our legislative work stops. Throughout the interim, we will be working in study committees to evaluate ways to better serve you in 2019, and I look forward to doing so. Thank you for the opportunity to serve the members of the 56th District, it is truly my honor. If I can ever be of assistance, or if you have any suggestions to solve the issues facing our community, please do not hesitate to contact me — my lines are always open.
to your business!