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Georgia Politics

Kemp Signs Largest Income Tax Cut in State History Into Law

On Tuesday, April 26, 2022, Governor Brian P. Kemp, joined by First Lady Marty Kemp, Lt. Governor Geoff Duncan, other members of the Georgia General Assembly, and more, signed the largest income tax cut in state history into law.

“Because of Governor Kemp and the General Assembly’s bold leadership, Georgia taxpayers will directly benefit from this historic tax cut,” said Lt. Governor Geoff Duncan. “I applaud the Governor and my colleagues for working to deliver fiscally conservative policies while prioritizing the needs of our growing state.”

“Today, we have enacted the largest income tax cut in state history – one that will keep more money in the pockets of hard-working Georgians,” said Speaker David Ralston. “I want to thank Governor Brian Kemp for working with the General Assembly to make sure this tax cut returned as much money to taxpayers as possible while keeping the state in a strong financial position.

“I also want to applaud House Ways & Means Chairman Shaw Blackmon for his tireless work throughout the legislative process to deliver a significant tax cut to Georgians with House Bill 1437.

“This is the third cut in the state income tax burden on Georgia families we have passed in the last five years. It demonstrates our continuing commitment to being good stewards of taxpayer dollars while meeting the needs of a growing, thriving state.”

Excerpt of Governor Kemp’s remarks:

Today is another reminder that we were right to protect both lives and livelihoods during the pandemic and not to let the critics influence us when we reopened our economy.

Because we made the tough decisions when it mattered most and because of our conservative approach to budgets and governing, Georgia leads the nation in the Great Recovery, and we are in the unique position to provide much-needed relief to hardworking taxpayers at a time when they are burdened by sky-high inflation caused by policies coming out of Washington.

Thus far this year, I have signed into law a tax refund that puts over a billion dollars back into the pockets of hardworking Georgians, a temporary suspension of the state gas tax to ease the pain at the pump, and just last week a military retirement income tax exemption – the first in our state’s history.

As I said earlier this year, we can’t fix everything that Washington has broken, but we are doing our part to lessen the impact on Georgians’ wallets.

Today, we will put into place a more long-term relief.

I strongly believe that government should take in the very least amount possible needed to serve the people properly.

We must never forget that taxpayer dollars are the people’s money – not the government’s!

HB 1437 provides the largest tax cut in Georgia history.

And once fully implemented, it will save an average Georgia family of four making 60,000 dollars over 600 dollars per year on their state taxes.

Over a period of seven years, it will cut the current rate of 5.75 percent that most Georgians pay to just 4.99 percent.

These decreases are purposefully separated over that span of time and begin in 2024 to ensure the state is able to respond appropriately to any unexpected or sudden downturns in the economy.

Thankfully, despite the headwinds we’re facing because of Bidenflation and bad policies on the federal level, Georgia is poised to remain a top destination for new jobs and investments.

Our strong and growing workforce, our logistics and transportation assets like the Georgia Ports Authority – now a national model – and the world’s most utilized airport, and our approach to partnering with job creators to bring opportunity to every corner of our state, means our economy will continue to thrive.

As it does, and if and when we hit the growth triggers specified in this bill, all Georgia taxpayers will benefit from that success.

So in closing, I want to again thank everyone standing with me here today who helped make this tax cut possible, including our partners at the Department of Revenue who are tasked with implementing this important proposal.

Georgia continues to be the best state to live, work, and raise a family – even in the face of truly unprecedented times – because of days like today when we put Georgians and their needs first.

Over this past legislative session, we have worked hard to build a safer, stronger Georgia for all who call the Peach State home. Today is just the latest fruit from that good labor.

Thank you. God Bless. And with that, I’ll now sign HB 1437 into law.

hb 1437

Read more on HB 1437 HERE.

 

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