ATLANTA (AP) — Georgia House Speaker David Ralston is proposing a $1 billion tax cut.
Ralston and other House Republican leaders on Tuesday unveiled a plan to create a flat state income tax with a 5.25% tax rate.
It would also raise the amount of income exempt from taxation and eliminate many deductions. The changes would begin in 2024, meaning most taxpayers would see no difference until they file their taxes in 2025.
Georgia’s top income tax rate is now 5.75%. Some Republicans propose to entirely abolish the state income tax.
Ralston rejects that move, saying it would create a “catastrophic” budget hole.
