The pace continues to pick up as the legislative session nears the end. We have passed several significant pieces of legislation thus far. I would like to highlight one bill in particular that will make a positive difference in the lives of millions of Georgians.
First tax cut in decades
Recently, House Bill 918 was passed by the Senate and House and signed by the Governor. This bill is arguably the most important bill to make its way through our chamber in years. House Bill 918 will reduce the current 6 percent income tax rate in Georgia to 5.75 percent in Tax Year 2019 and to 5.5 percent in 2020, pending the General Assembly’s approval.
This approach solidifies our intent to further reduce the tax burden on our citizens while still providing a safeguard mechanism for Georgia’s future economic health. In addition, HB 918 will double the standard deduction from $3,000 to $6,000. This is exciting news for everyone, as families of four whose household income is $50,000 per year could see a 16 percent decrease in their tax burden.
Furthermore, corporations in Georgia will also see the same reduction in income tax rates, encouraging more businesses to open up shop here. As legislators, we want to help citizens keep more of your hard-earned money while also maintaining Georgia’s position as the No. 1 state in which to do business. We also want to be diligent in protecting our AAA bond rating, which is something we have secured for 20 consecutive years.
I am proud that the General Assembly, along with the help of Governor Deal, was able to pass one of the single largest income tax reforms in state history. In fact, the individual income tax rate has not changed in Georgia in over 80 years. Additionally, the corporate tax rate has not changed in almost 50 years. House Bill 918 will amount to more than $5 billion in savings to Georgia taxpayers over the next five years.
This legislation comes as a result of the positive effects brought by the passage of the Federal Tax Cut and Jobs Act. The state of our economy has changed over the last several decades, and it was evident to Governor Deal and the General Assembly that these reforms were necessary and would create significant advantages for current and future residents. I am proud to have been a part of passing this momentous legislation and look forward to seeing the benefits it will bring to the citizens of Georgia and the 50th district.
Contact me
Please let me know if you are at the Capitol. I’d love to have the opportunity to talk to you about issues you find important. I am honored to serve on your behalf here in Atlanta. If I can be of any assistance, please feel free to reach out to my office at 404.463.5257 or by email at [email protected].
About the author: Sen. John Wilkinson serves as Chairman of the Agriculture and Consumer Affairs Committee and Vice Chairman of the Education and Youth Committee. He represents the 50th Senate District which includes Banks, Franklin, Habersham, Rabun, Stephens and Towns counties and portions of Hall and Jackson counties. He can be reached by phone at 404-463-5257 or by email at [email protected]
