ATLANTA – Today State Representative Virgil Fludd (D-Tyrone) filed House Bill 1066- legislation that would generate approximately $220 million through a temporary one percent surcharge for married couples who have a total income of more than $400,000 and single individuals with an income of $200,000. The additional income tax surcharge affects less than one percent of Georgia taxpayers.
“As we all know, the state of Georgia is facing tough times so we have to do everything we can to maintain a balanced budget without laying off teachers or eliminating important programs,” said Representative Fludd. “No one likes tax increases but these are very unusual times. We need strong leadership because spending cuts alone will not solve our problems. HB 1066 will help prevent these devastating cuts, while only affecting less than one percent of Georgia taxpayers.”
The state of Georgia has not adjusted income tax rates in more than 70 years and currently has a top income tax rate of six percent beginning at $10,000. Other states have recently issued similar surcharges, including North Carolina and Wisconsin.
Facing a $4 billion deficit, North Carolina chose to enact more than $1 billion worth of tax increases in 2009. These increases included a temporary two percent surcharge on income between $60,000 and $150,000 for single filers and between $100,000 and $250,000 for married couples filing jointly. Income above those amounts was taxed an additional three percent. The three percent surtax was also placed on corporate income.
Wisconsin enacted a 7.75 percent income tax bracket on all income above $300,000 for married couples and $225,000 for individuals and heads of households. The state also lowered the exclusion for capitol gains income to 30 percent from 60 percent. These changes are expected to generate approximately $280 million for Wisconsin in the state’s 2010 fiscal year.
“Other states across the country are facing similar challenges as a result of this recession. 31 states had tax increases in 2009 and six more are looking at increases in 2010,” added Representative Fludd.
HB 1066 has been assigned to the House Ways and Means Committee. More information about the bill can be found by clicking here.
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Representative Virgil Fludd represents the citizens of District 66, which includes portions of Fayette and Fulton Counties. He was elected into the House of Representatives in 2002, and currently serves on the Banks & Banking, Regulated Industries, and Ways & Means Committees.