Most small businesses, startups and other innovative companies pay personal income taxes, rather than corporate taxes. Cutting the personal income tax rate by a third will help these high-growth businesses expand and help us compete with states with no income tax.
The proposal takes into account the plight of the poor: Food stamp exemptions and tax credits would offset negative impacts. By comparison, Florida, Texas and Tennessee, which rely solely on higher property and sales taxes, offer no low-income tax credits. Concerns about regressive taxes should focus on the proposed 84 percent increase in tobacco taxes.
Allowing families to keep more of the income they earn is the right thing to do. The income tax is more of a tax on becoming wealthy than a tax on the wealthy, who have many ways to avoid taxes.
We should seize this opportunity for a broader, more efficient, more stable and faster-growing tax base that addresses long-term budget needs. A pro-growth tax code is vital to getting Georgia’s economy back where it belongs, and these recommendations are a major step in the right direction.
Kelly McCutchen is president of the Georgia Public Policy Foundation.