A state Senate committee held its first meeting Wednesday on whether Georgia should consider “Fair Tax” reforms, including a reduction or even elimination of state income taxes.
Although the issue is unlikely to gain traction by January, when lawmakers come back to Atlanta for their next legislative session, the study committee plans to hold hearings across the state and issue its findings by the end of the year.
Proponents of the Fair Tax favor a consumption-based sales tax over income taxes to pay for essential government services. They believe a sales tax would free up more money toward business investment, production and savings. The effect, they say, would decrease the overall tax burden on consumers, reduce government spending and stimulate the state’s economy.
Opponents, however, decry the idea as unworkable and say it disproportionately benefits the wealthy over the middle class.
While state leaders have enacted tax changes over the last several years, they have been hesitant to do anything too major as the state has struggled to recover from the recession.
Still, the committee’s chairman, Sen. Judson Hill, R-Marietta, said he wanted to explore the idea further.
“Many of us know and many of us believe Georgia and our country could benefit from a more fair and level tax system,” Hill said. “We’re exploring how something like this could work.”
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