Georgia Lawmakers Sign Off on Flat Tax

Governor Brian Kemp

Georgia lawmakers passed legislation that will gradually drop the state income tax rate over the next few years, a move that proponents say will make the state more competitive.

The state House voted 167-2, and the state Senate voted 41-13 in favor of an amended House Bill 1437. The bill sets the state’s tax level at 4.99% by 2029, starting with a 5.49% flat tax for the tax year beginning Jan. 1, 2024.

The measure, which received broad bipartisan support in both chambers of the Legislature, now heads to Gov. Brian Kemp, a Republican, for his signature. Kemp is expected to sign the bill into law.

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Arizona GOP Legislators and Gov. Ducey Drafting Legislation to Combat Initiative That Would Derail Historic Tax Cuts

Last year, Arizona enacted historic tax cuts, changing the state’s tax code law to mostly a 2.5% flat tax rate. But opponents collected enough signatures to put an initiative on the ballot this fall, Prop. 307, that would reverse the legislation. In response, Republican state legislators are working with Gov. Doug Ducey to pass legislation that would make the initiative null and void — and maybe implement even more striking tax cuts. 

State Rep. Jake Hoffman (R-Queen Creek), who sponsored legislation last year that would have repealed and replaced the historic tax cuts with an even more far reaching 1.5% tax rate, told The Arizona Sun Times, “I told the Governor’s office that the 2.5% tax rate he’s pushing for can only be the starting point. With yet another year of record budget surpluses of nearly $4 billion, the people of Arizona are being overtaxed. We must cut taxes even more during the budget process.” 

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Lawsuit Filed Against Referendums That Attempt to Reverse Arizona’s Historic Tax Cuts

The Arizona Free Enterprise Club filed a lawsuit recently against Invest in Arizona over the organization’s attempt to get three referendums on the Arizona ballot that would reverse Arizona’s recently passed tax cuts. The lawsuit contends that since the tax cuts “provide for, and directly relate to, the generation of revenues that are remitted to the general fund and appropriated to various agencies, departments and instrumentalities of the state government,” they cannot be the subject of a referendum and are unconstitutional.

AFEC President Scot Mussi, who is one of the plaintiffs, said, “All three bills directly provide for the support and maintenance of the state, were key aspects of the state’s budget, and therefore are not referable by Invest in Arizona.”

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Historic Income Tax Overhaul Reduces Burden by 13 Percent for Most Arizonans

Arizona Governor Doug Ducey is expected to sign a budget bill the Arizona Legislature sent to him on Friday that includes a historic tax reform package. HB 2900 implements the lowest flat tax in the country, 2.5%. The average Arizona family will see a 13% income tax reduction, about $350 per year. According to the nonpartisan Tax Foundation, Arizona previously had one of the highest marginal income tax rates in the country. 

The budget bill also eliminates taxes on veterans’ retirement pay and prevents a 77% increase on small business taxes. It reduces property taxes by 10% on small businesses and job creators by 10%, capping the maximum tax rate on businesses at 4.5% and reducing commercial property taxes. According to a report by Ducey, 43% of Arizonans in the private sector work for small businesses. HB 2900 increases the homeowner’s rebate so the state covers half of homeowners’ primary property taxes.

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Arizona House Passes Tax Reforms Adopting Flat Rate, Reduced Income Tax

PHOENIX, Arizona – Thursday, the Arizona House passed tax reforms to implement a flat tax rate and reduced income tax during the ongoing debate over the budget. With it, they ushered in a $1.9 billion tax cut and lowered taxes to about 2.5 percent.

House Republicans announced their victory early that afternoon.

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New Mission PAC Hosts GOP Gubernatorial Forum

GOP gubernatorial candidates Delegate Kirk Cox (R-Colonial Heights), Peter Doran, Sergio de la Peña, and Glenn Youngkin met on Zoom on Thursday evening to answer policy questions about school reform, fixing Virginia’s tax code, improving broadband access, and making Virginia more veteran friendly. The New Mission PAC hosted the forum. PAC founder Daniel Gade and former Delegate Chris Saxman asked the questions in a format designed to allow candidates to demonstrate policy positions without engaging in direct debate.

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