Bill would lower Georgia state income tax rate

Legislation that would scrap existing Georgia’s income tax rate and replace it with one flat rate was filed Friday in the state House.

House Bill 329 is sponsored by Ways and Means Committee Chairman Jay Powell, R-Camilla.

Powell would get rid of the six different rates Georgia now uses, which range from 1 percent to 6 percent, and replace them with a single 5.4 percent rate.

It’s not immediately clear the impact the bill would have on state revenues but Gov. Nathan Deal has long said he does not support tax plans that make Georgia’s budget less stable.

Powell’s bill would mean a tax cut for any individual making more than  $7,000 and for any married couple who file joint returns and make more than $10,000.

All other tax brackets would see an income tax increase. But Powell also would create a state earned income tax credit to help those lower-income individuals and families.