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AJC.com > Legislature > Blog > Archives > 2007 > March > 15 > Entry
DEL.ICIO.USCommittee backs reduced taxes for retirees
The Atlanta Journal-Constitution
Gov. Sonny Perdue’s plan to eliminate state income taxes on upper-income retirees won easy passage this afternoon from a key House committee.
The measure, which passed the House Ways & Means Committee, now heads to the House floor for a vote. Republican leaders are strongly in favor of the tax break, which was part of Perdue’s platform last year when he ran for and won re-election.
Under the bill, state income taxes on retirement earnings — such as stocks, pensions and 401 (k)s — would be eliminated. Seniors who work would continue to pay state income taxes on their earnings.
A law passed in 2003 will already exempt the first $35,000 in retirement income per person when it is fully phased in next year. Social Security is already generally not taxed, so under current law, many seniors with retirement income up to $55,000 or so or couples with twice that income will already be exempt from paying state income taxes.
The new law exempts retirement income above that.
A study by the Georgia Budget and Policy Institute, which supports higher social service spending, estimated only seniors in the top 10 percent of income would benefit from Perdue’s latest measure. The study said 96 percent of the tax cut would go to seniors with incomes of $100,000 or more.
The idea of the tax break is to make Georgia a haven for retirees and let the state compete with places like Florida, which doesn’t have a state income tax.
Perdue’s latest bill — to eliminate income taxes for upper-income retirees — would save retirees and cost state coffers about $140 million a year. However, the bill’s sponsor, Rep. Rick Golick (R-Smyrna), said it could boost the state’s economy by letting the state attract and retain high-income retirees who would spend money here.
“From an economic development standpoint, it will more than pay for itself,” Golick said.
Rep. Stacey Abrams (D-Atlanta), a member of the committee, said more retirees would mean higher government expenses for such things as health care for the elderly.
“This revenue projection doesn’t anticipate costs the state will incur over the next 10-15 years,” said Abrams, who voted against it.
Permalink | Comments (4) | Categories: politics
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By JustMe
March 16, 2007 11:18 AM | Link to this
More of republicans helping the rich become richer. Wealthy retirees paying no taxes - figures.
Gee, I wonder where the State will find the money to replace the void from this? Maybe from middle class working folks, AGAIN??????
By gundoctor1
March 19, 2007 8:42 AM | Link to this
JustMe sounds like all other Dems. When the top 5% pay 80% of the taxes they should get the tax breaks.
I’ve got 2 words for you justme. Jimmy Carter!! Guess you loved him too? Well, that makes 2 people you and his wife!
By Hal Jackson
March 19, 2007 10:38 AM | Link to this
I’ve good some BAD news for Mr.James Salzer, Social Security is taxed up to 85% of benefits, one has already paid taxes of 50% when they received their pay checks. Also, I earned a penision in the state of Tennessee, that was a part of my salary, I pay Georgia Income Tax on that part of my penison income, tell me how fair that is.
By JustMe
March 19, 2007 11:08 AM | Link to this
gundoctor1:
You are the worst type of republican - an idiot! Wait a minute, that is all of them!
Are you really saying that it makes sense in your little world for a family of 4 with parents trying to make ends meet on minimum wage to pay taxes, while a wealthy retired couple, making tons of extra money with no dependents at all shouldn’t pay any taxes?
Yes. You are part of the insane republican conservatives that are ruining this Country.