UPDATE: Governor proposes slashing taxes after federal 'windfall - WRCBtv.com | Chattanooga News, Weather & Sports

UPDATE: Governor proposes slashing taxes after federal 'windfall'

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UPDATE: ATLANTA (AP) - The governor and lawmakers have announced a proposal to slash income taxes in Georgia in response to federal tax changes passed in December.
            
Republican Gov. Nathan Deal on Tuesday unveiled what he called one of the largest income tax reforms in Georgia's history.
            
The governor's office estimates Georgia could collect $4.7 billion in added taxes over the next five years because of the federal changes. Deal had hoped to defer the question of how to use those funds until 2019, but changed course after receiving blowback from GOP leaders up for election in November.
            
The proposal would cut top income tax rates for individuals and businesses from 6 to 5.75 percent in 2019, with an option for further cuts in 2020, and double the standard deduction for all filers.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


PREVIOUS STORY:   ATLANTA (AP) - When Congress overhauled the federal tax code two months ago, Georgia officials didn't initially realize how much extra money taxpayers would be giving the state.
    
Now, with Georgians expected to pay an additional $4.7 billion in state taxes cumulatively over the next five years, lawmakers are debating what to do with the extra funds.
    
Republican Gov. Nathan Deal had hoped to defer the question until 2019. After receiving swift pushback last month from other GOP legislative leaders - including many running for higher office in November - Deal decided instead to slash the so-called windfall by 75 percent before it even arrives.
    
Democrats argue that the money could be a boon and be reinvested in state services, while some conservatives think the money should immediately prompt tax cuts.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


 

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