Georgia Republicans propose phasing out state income tax by 2032

Georgia Senate Republicans backed a plan to phase out the state's personal income tax by 2032; lawmakers are divided and questions remain about how the state would replace the lost revenue for services like education and health care.

Republican leaders in the Georgia Senate on Wednesday backed a plan to phase out the state's personal income tax by 2032. The tax currently brings in about $16.5 billion this year, roughly 44% of Georgia's general revenue. The push has a political dimension, with Lt. Gov. Burt Jones emphasizing elimination in his 2026 gubernatorial campaign. Lawmakers are divided over the plan and debate is expected as the session continues. Key points: - The Senate-backed proposal would reduce and ultimately eliminate the personal income tax by 2032. - Georgia's personal income tax is projected to raise about $16.5 billion this year, or about 44% of the state's general revenue. - Supporters argue the cuts would help affordability and attract residents and businesses; critics say benefits would skew to higher earners and could endanger funding for services such as education and health care. - It is unclear if the proposal will pass; the Georgia House and the governor have signaled differing views and further legislative debate is expected. Summary: If enacted, the plan would substantially reduce state revenue and raise questions about how funding for public services would be maintained. Lawmakers in the House and the governor have expressed varying levels of support, and the plan's passage is undetermined at this time.