ATLANTA — State Representative John Carson (R-Marietta) today announced the introduction of the More Take Home Pay Act, or House Bill 445. The More Take Home Pay Act reforms Georgia’s tax system by broadening the tax base and moving toward a more consumption-based model.
“Georgia’s tax system is long overdue for commonsense reform,” said Rep. Carson. “The More Take Home Pay Act empowers Georgians to make more personal choices with their hard-earned income, shifting the power away from the state and toward the kitchen table. Ultimately, this bill answers the need for an updated tax system that is flatter, fairer, and puts our families first.”
“Representative Carson is continuing one of the General Assembly’s most important discussions and I look forward to an open, inclusive debate on this proposal,” said Speaker of the House David Ralston (R-Blue Ridge). “We need a tax structure that encourages families to save and businesses to invest so that Georgia can remain competitive with our neighboring states. This bill will go through the committee process and, as always, constructive input is welcomed.”
The More Take Home Pay Act is the result of an in-depth, comprehensive study of Georgia’s current tax system and how it impacts the average household. Rep. Carson explained the provisions of the bill as follows:
• Cuts the income tax burden on Georgia families by over $2.5 billion
• Households making $29,500 or more will see an increase in take home pay
• Households bringing in $48,000 (the median Georgia household income) will keep $400 extra annually
• Reduces income tax rate to 4% over a period of three years (2016: 4.5%, 2017: 4.25%, 2018: 4.0%)
•Keeps itemized deductions and personal exemptions while doing away with many special interest loopholes
• Raises general state sales tax by 1% on January 1, 2017, which will raise from the current 4% to 5% and includes digitally-delivered goods (Downloadable software, e-books, music and movies, video games, and apps) that are taxed in many other states
• Phases in a grocery state sales tax over a four year period (2016: 0%, 2017: 3%, 2018: 4%, 2019: 5%) with each 1% contributing $130 million to state budget. Food stamp purchases will be exempt from grocery tax
• Implements a flat, fair communications service tax beginning on January 1, 2016: State telecom: 5%, State cable: 5%, State direct broadcast satellite (DBS): 7%, Local telecom: 1.25%, School telecom: .75%, Local cable: 2%
• Increases the current cigarette excise tax over three years (2017: $0.45, 2018: $0.55, 2019: $0.65)
HB 445 was filed in the House on Monday, February 23. The bill will now go through the committee process, and the proposed figures listed above are subject to change as the bill goes through the legislative process. If approved by the House, it would then go to the State Senate for consideration.
Representative John Carson represents the citizens of District 46, which includes portions of Cherokee and Cobb counties. He was elected into the House of Representatives in 2011, and currently serves as the Vice Chairman on the Intragovernmental Coordination Committee, and Secretary on the Energy, Utilities & Telecommunications and Insurance committees. He also serves on the Ways & Means and Transportation committees and serves as the Chairman of the Cobb County Delegation.
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