Rep. Soo Hong, a Lawrenceville Republican who serves as the governor’s floor leader in the House, makes the case for accelerating planned cuts to the state’s income tax rate on Crossover Day. Jill Nolin/Georgia Recorder
The Georgia House signed off on the governor’s proposal to speed up a planned income tax rate cut Thursday but not before several Democrats blasted the plan as a risky gamble with a key source of state revenue.
The bill, sponsored by Rep. Soo Hong, a Lawrenceville Republican who is the governor’s floor leader, would hurry along a rate reduction plan originally passed three years ago that was accelerated just last year with unanimous support in the House.
Under the revised plan, the income tax rate would drop to 5.19% for this year, down from 5.39%.
The cut will save taxpayers – and cost the state’s coffers – about $870 million overall.
“While other states are raising taxes on their citizens, and while we’re facing sky-high prices and can least afford it, we are doing the opposite here in Georgia,” Hong said Thursday.
The bill passed with a 110-to-60 vote in the House, with about a dozen Democrats supporting it. A proposal to send back part of the state’s surplus to taxpayers through a one-time refund found far more support, with the House unanimously backing the $1 billion proposal.
Using a portion of the state’s reserves, the state would send $250 to individual taxpayers, $375 to single adults with dependents and $500 to married couples filing jointly.
Both bills passed on Crossover Day, which is the last day for a bill to pass out of one chamber to have a smooth path to the governor’s desk – something Gov. Brian Kemp noted when he signed this year’s amended budget Thursday during a ceremony at the Capitol.
“I just want to remind the Legislature, y’all do need to pass that today to get it to cross over,” Kemp said. “I feel certain you’ll be able to help us with that. As soon as we pass the second tax cut acceleration measure, we’ll be able to keep even more of Georgians’ money in their pockets, because they know how to spend it better than the government does.”
State leaders have been reducing the income tax rate since 2018, when the state’s top rate sat at 6%. Georgia has since moved to a flat tax rate. Under the previously approved plans, the rate would eventually drop to 4.99%.
But Democrats pushed back on the rush to cut the rate beyond what was already planned and set aside the cautious approach outlined in previous bills. Rep. Saira Draper, an Atlanta Democrat, said one of the requirements was that the governor’s revenue estimate increase by 3% – something that didn’t happen for next year’s budget.
“I rise today not out of opposition to tax relief but out of a deep concern for fiscal responsibility and to hold this chamber accountable to the standards that we set for ourselves,” Draper said. “Call me old fashioned, but I like to do what I say and say what I mean.”
Draper questioned whether political aspirations for higher office might be driving Kemp’s more aggressive plan. The term-limited governor’s plans for 2026 are being closely watched.
“I say, no, carry your own water. If you want to give tax breaks, meet the standards that we have set in this chamber,” Draper said.
Other Democrats questioned the wisdom of foregoing more of a critical revenue source at a time of uncertainty under the new Trump administration.
“In the past few weeks, we’ve seen uncertainty in federal funding and tariffs from the new administration, we’ve seen talks of cuts to K-12 school funding, cuts to Medicaid and Medicare,” said Rep. Karla Drenner, an Avondale Estates Democrat. “And is this really the best time to accelerate an income tax cut that primarily benefits wealthy people in Georgia?”
While all taxpayers would see some savings, the size of the relief varies based on the person’s income with higher earners seeing a greater tax break, according to analysis from the Georgia Budget and Policy Institute. Lower income households would see smaller savings.
Rep. Sam Park, a Lawrenceville Democrat who serves as the minority whip, said for about half of Georgians living in lower-income or middle-class households, the rate cut would mean a savings of about $6 per month.
“Y’all, you can’t even afford a dozen eggs with $6 a month,” Park said.
“(This) is not a responsible approach to tax reform,” he also said. “It is a risky, top heavy tax giveaway that benefits a few at the expense of the many. It is bad economics, bad policy, and bad for Georgia’s long term financial health.”
Rep. James Burchett, a Waycross Republican who is the House majority whip, argued that $6 a month – or $70 a year – could mean a couple meals out for a single mother of two.
“This ideal that we do a better job of spending Georgians’ money than they do is preposterous. It is crazy. It is nuts,” Burchett said. “I can’t understand for the life of me how the party of the people can come in here and say that we don’t want to give you your money back. We want your money because we know better than you.”
Both bills now move to the Senate. April 4 is the last day of the session.
Georgia Recorder reporter Ross Williams contributed to this report.
YOU MAKE OUR WORK POSSIBLE.