ATLANTA – Georgia taxpayers will pay a little less after Gov. Brian Kemp signs two tax relief measures following their approval Thursday by the state Senate.
“The final passage of these two measures today brings us one step closer to eliminating the state income tax, while providing tax relief for Georgia families and businesses,” said Lt. Gov. Burt Jones, who thanked Kemp for leading the effort.
House Bill 112, which passed unanimously, seeks to give one-time rebates equaling $250 to single tax return filers, $375 to heads of household and $500 to married couples filing jointly.
But a tax cut bill – House Bill 111 – was as controversial in the Senate as it had been in the state House of Representatives, with Democrats calling it a sop to the rich that would reduce funding for services to the poor and Republicans labeling their criticism “class warfare.”
The bill, which passed 30-23 with mostly Democrats opposed, would reduce Georgia’s income tax rate from 5.39% to 5.19% retroactive to the beginning of the current tax year.
Sen. Elena Parent, D-Atlanta, said it amounts to $10 off the taxes for earners in the bottom 20% but at least $3,000 for the top 1%.
“That is a finger in the eye of everyone who struggles to afford gas, eggs and rent,” she said. “When you make $2 million a year, you’re probably not worried about $3,000.”
Sen. Ed Setzler, R-Acworth, said a large portion of those top earners are actually small businesses. They’ll notice $3,000, he said, adding that it’s enough to pay their internet bill.
In conjunction with the tax cut, Republicans said, a low-wage family of four will owe nothing.
“You won’t pay a dime in state income tax unless you make over fortyish thousand a year,” said Sen. Bo Hatchett, R-Cornelia, adding that he’d like to see the state income tax eliminated altogether.
The two Republicans who sided against HB 111 did so accidentally.
One of them, Sen. Bill Cowsert, R-Athens, asked to reconsider the vote before withdrawing that request. A spokesman later explained that he and Sen. Clint Dixon of Buford, the other Republican ‘no’ vote, had pushed the wrong button at their desks and had intended to support HB 111.
Both later filed clarifying statements with the secretary of the Senate. (Something similar happened last month when Sen. Nan Orrock, D-Atlanta, accidentally voted with two Republicans against a measure to ban cockfighting.)
The Senate also on Thursday gave bipartisan approval to House Bill 161, which would empower the Georgia Bureau of Investigation to issue subpoenas in investigations into domestic terrorism. The GBI must get court approval for subpoenas, but this legislation would bypass that process to expedite investigations of crimes like swatting.
HB 161 now returns to the House for approval of Senate amendments.