News Summary
A new Senate Special Committee has been established to investigate the potential elimination of Georgia’s state income tax, which is currently set at 5.19%. Lt. Gov. Burt Jones formed the committee in July 2025 to assess the feasibility of abolishing the income tax while ensuring essential services remain funded. The discussions come amidst growing competition from neighboring states reducing or eliminating their income tax rates, prompting concerns about Georgia’s economic attractiveness. While some advocate for tax reform, critics warn of potential revenue loss impacting public services.
Atlanta, Georgia — A new Senate Special Committee is investigating the potential elimination of Georgia’s state income tax, which currently stands at 5.19%, the second highest in the nation. Established by Lt. Gov. Burt Jones in July 2025, the committee convened for its inaugural session on August 19, 2025, amidst growing discussions about tax reform and its implications for state revenue.
The committee’s primary goal is to assess the feasibility of abolishing the income tax while ensuring that essential services remain adequately funded. This examination comes as several neighboring states, including South Carolina and North Carolina, have either reduced their income tax rates or eliminated them entirely, raising concerns about Georgia’s competitiveness in attracting businesses and residents.
Grover Norquist, an influential figure in national tax policy and founder of the Americans for Tax Reform, provided the committee with insights and recommendations on how to move forward with this initiative. He shared data that highlights a trend among states lowering or completely removing income tax, citing North Carolina as an example of a state experiencing revenue growth and increased economic activity as a result.
However, the prospect of eliminating the income tax is not without its critics. Senator Nan Orrock has voiced serious concerns about the potential loss of state revenue and the subsequent impacts on funding for vital services, including those for children with disabilities. The state’s current revenue structure relies on personal income taxes for approximately 41.6% of its total revenue, which raises questions about how Georgia could maintain funding levels if such a significant source of revenue were removed.
In response to critics, Norquist pointed out that some states have been able to successfully increase revenue even after cutting their income tax rates. He emphasized responsible fiscal management, including capping spending below incoming revenues, as a strategy that allows states to thrive economically while offering a more attractive tax environment. Furthermore, he suggested that eliminating the corporate income tax alongside the personal income tax could create an additional incentive for investments in Georgia.
Senator Greg Dolezal highlighted concerns regarding shifting the tax burden from income to consumption taxes. He sought clarity on how states can maintain their revenue levels when income taxes are reduced or eliminated. Norquist reiterated that with careful fiscal oversight and a focus on attracting more residents and businesses, it is possible to manage revenues effectively even with lower tax rates.
As the committee continues its discussions, Danny Kanso, a senior fiscal analyst at the Georgia Budget and Policy Institute, expressed skepticism about the overall feasibility of cutting income taxes without escalating taxes in other areas to compensate for revenue losses. The implications of reduced income tax could disproportionately affect lower-income residents, who might face higher sales taxes or cuts to essential services.
The committee aims to devise a realistic plan for abolishing the income tax in time for the 2026 legislative session. As this debate unfolds, it holds political weight, particularly as Lt. Gov. Burt Jones positions tax reform as a pivotal issue in his campaign for the governor’s office.
The conversation surrounding income tax elimination reflects a broader national trend, where states are reconsidering their tax structures to improve economic competitiveness and attractiveness. The outcome of Georgia’s discussions could have significant ramifications not only for the state’s fiscal health but also for its residents’ quality of life.
Deeper Dive: News & Info About This Topic
- Georgia Recorder: Georgia lawmakers explore ways to end the state income tax
- Google Search: Georgia income tax elimination
- Kiplinger: Georgia could end income taxes
- Wikipedia: Taxation in the United States
- AP News: Georgia Republicans push for income tax elimination
- Encyclopedia Britannica: Income tax
Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
