Georgia Senate OKs state income tax cap proposal - CBS46 News

Georgia Senate OKs state income tax cap proposal

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ATLANTA (CBS46) -

John McRae said if he could vote to keep his taxes from going up, he would.

"I think it's a good idea," McRae said.

The Georgia Senate approved Senate Resolution 415, a proposal that let voters decide whether to amend the Georgia constitution to cap state income tax at the current maximum of 6 percent, an idea McRae liked.

"People can see where their money is going to," McRae said.

State Sen. David Shafer is president pro tempore of the Georgia Senate, one of the most powerful elected officials in the state.

Shafer, who wants to eventually abolish the state income tax altogether, said capping it would attract business.

"We believe they are high enough, ought to be capped and look to lowering the tax burden. If you can make Georgia attractive to businesses who create jobs here and increase the amount of income, then revenue will increase based on the current or lower rate," Shafer said.

Wesley Tharpe, a policy analyst at the Georgia Budget and Policy Institute, called the proposal "misguided."

"That shifts taxes away from those most able to pay, the wealthiest individuals and the corporations, onto lower income families and middle class families," Tharpe said.

Tharpe said that freezing the income tax rate would hurt the state budget and drain money from vital programs.

"It would lead to drastic cuts in things like education, transportation, human services, which are just as important to a strong economy that grows jobs as much as a competitive tax structure," Tharpe said.

The resolution goes to the Georgia House. If the proposal gets a two-thirds majority, it would then go to voters to decide in November.

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