Updated at 5:07 p.m.: The joint House-Senate committee sent HB 387, a tax overhaul bill that expands the reach of the sales tax and cuts the personal income tax rate, to the House for the first of two all-or-nothing votes.
The House is to vote on the matter Wednesday. The Senate could vote as early as Friday.
Original: My AJC colleague Chris Joyner just scored some Democratic number-crunching on the impact of HB 387, the tax overhaul bill that would trade increased sales taxes for a 25 percent reduction in the personal income tax rate.
Despite that reduction, because deductions would be capped, 1.2 million individuals and couples in Georgia who earn between $20,000 and $180,000 a year – and file itemized deductions — would pay anywhere from $44 to $419 a year more in income taxes, according to figures provided to the party by the Georgia State University Fiscal Research Center.
Income brackets above $180,000 would pay fewer taxes, with $1,000-plus benefits to those earning above $300,000.
All Georgians who do not itemize their annual personal income tax returns would pay less.
We understand that Republicans in the Capitol have been running their own numbers, but so far they have not shared them.
The Democratic figures do not take into account other aspects of HB 387, including lower taxes on cable TV, a new sales tax on satellite TV, and a sales tax on car repairs.
The numbers were received just as a second meeting of the House-Senate tax committee began Tuesday afternoon.
House Majority Leader Larry O’Neal, R-Bonaire, a tax accountant, disputed the Democratic figures when they were brought up by state Sen. Steve Thompson, D-Powder Springs.
- By Jim Galloway, Political Insider