Georgia House Republicans are pushing for a tax cut for parents, proposing to increase the yearly state income tax deduction per child from the current $3,000 to $4,000. This would amount to roughly $55 more per child, and around $150 million state-wide. This initiative is being backed by House Speaker Jon Burns amid high childcare costs.
Additionally, the House Speaker intends to elevate the state homestead exemption from $2,000 to $4,000, a move that could save homeowners an estimated $100 million statewide. However, this would have to be approved by voters in a November referendum if passed.
Burns has likewise reiterated Governor Brian Kemp’s plan declared in December to expedite a planned reduction in the state income tax rate. The measure would decrease the rate from 5.49% to 5.39% retroactive from the start of the year. Kemp and Burns also propose allocating all of Georgia’s unallocated surplus cash into its rainy day account. This action aims to solidify the state’s fiscal standing and provide taxpayer relief.