According to the Atlanta Journal-Constitution, new tax cuts in the Georgia income tax would mean little to many people.
State lawmakers in Georgia will vote on whether to reduce the state’s top income tax bracket from 5.75% to 5.5%. While that doesn’t sound like much, it will save wealthier Georgians about $550 million a year, according to a report from Georgia Budget and Policy Institute think tank.
The tax cut will be relatively small for each household and benefits those making well over $100,000 a year. Just last year, lawmakers cut the top rate from 6% to 5.75%.
Danny Kanso, an analyst for the institute, said, “If you were to enact this second phase of tax cuts, the median taxpayer would get about $42. This actually would not be a true tax cut for most people. It would be a very minor change that the state can’t afford.”
Kanso argues that most of the savings will go to very rich households while the average person won’t get much. Some believe that any tax cuts giving people their money back is a good thing.