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Week Eight Update
Transportation
Part of the new transportation budget has been reliant on eliminating a $5000 tax credit consumers received when purchasing or leasing an electric car. Legislation to eliminate the credit was voted down last week in subcommittee, but was resurrected on Tuesday when it was un-tabled and quickly passed while there were no Democrats present in the meeting. The official state estimate is that between 2016 and 2020, the state will pay $628 million for the $5000 tax credit in total. Some believe that with the resurrection of HB 122, the transportation plan (HB 170) has received a boost in its support. Read more…
Income Tax
State Representative John Carson has filed a bill that would cut the state’s income tax rate and increase Georgia’s sales tax across the state, which he believes will result in more money in the taxpayers’ pocket. House Bill 445 is titled “The More Take Home Pay Act” and would lower income tax rate from 6 to 4 percent over a 3 year span and raise the state’s sales tax by 1%. It would also allow the state to tax groceries, which are currently exempt from state tax in Georgia. Carson says that this would save the families of Georgia a total of $2.5 billion in taxes. The bill would gradually lower the 6 percent income tax rate to 4.5 percent in 2016, 4.25 percent in 2017, and a flat 4 percent in 2018. The Sales tax increase would begin on January 1, 2017, and would allow the state to tax digital content at 5%. There would also be a gradual increase on the excise tax on cigarettes, from 37 cents- 67 cents by 2019. Other business’s that could see gains in taxes are direct broadcast satellite services, other telecommunication industries and Delta Airlines. Read more…