Economy and Fiscal Policy

Georgia Senate Republican leaders, led by Lt. Gov. Burt Jones and Sen. Blake Tillery, unveiled a plan on January 7, 2026 to phase out the state’s personal income tax by 2032, even though it is projected to raise about $16.5 billion this year—44% of general revenue. The proposal would first lower the flat rate from 5.19% to 4.99%, then in 2027 sharply increase the amount of income exempt from tax to $50,000 for individuals and $100,000 for married couples, while House Republicans, Gov. Brian Kemp and Democrats diverge over whether such a large cut is affordable without offsetting tax hikes or spending cuts.