Georgia lawmakers are charging ahead with a radical overhaul of the state’s tax code, aiming to scrap the personal income tax entirely and unleash economic growth that would put more money in the pockets of working women and families.
The Republican-led Senate Special Committee on Eliminating Georgia’s Income Tax held its fourth meeting Monday, November 17, at the State Capitol, drawing testimony from policy heavyweights like economist Arthur Laffer, the father of supply-side economics. Laffer urged the panel to follow the lead of no-income-tax states like Tennessee and Florida, arguing that axing the 5.19% levy—which pulls in about $16 billion annually—would supercharge job creation and investment.
“What I’m saying here is when a state introduces an income tax, it collapses before your very eyes. If they were to get rid of their income tax, they could return to the state they were prior to the income tax, which would be an enormous improvement,” Laffer said regarding states he’s studied that nixed their income tax.
Sen. Blake Tillery, R-Vidalia, chairs the special committee and has been a longtime proponent of this issue. As the Senate’s Appropriations Committee chairman, he has looked at Georgia’s financial numbers for a long time and believes that zeroing Georgia’s income tax rate is entirely possible. The special committee is racing toward a draft proposal ahead of the legislative session, which starts in January.
With the income tax funding more than half of the state’s general budget, replacement strategies dominated the discussion. Options on the table include trimming the approximate $30 billion in corporate tax credits and exemptions, broadening the sales tax base, and potentially hiking the rate from 4% to around 6% statewide—pushing the average combined rate to 15.4% when local add-ons are factored in. However, Laffer and Sen. Tillery both advocate that Georgia can wipe out income tax without raising the sales tax rate if the corporate welfare is slashed.
Critics, including Democratic Sens. Nan Orrock and Ed Harbison, blasted the plan as a “massive handout to the rich,” warning it could sock middle-class families with higher sales taxes on essentials like groceries and diapers. The left-leaning Georgia Budget and Policy Institute analysis effectively says the same, projecting that households earning under $153,000 would see net tax increases, while the top 1% reaps big savings.
But proponents, including witnesses from the Independent Women, counter that the long-term gains outweigh short-term tweaks. Patrice Onwuka, director of Independent Women’s Center for Economic Opportunity, testified that getting rid of the income tax would empower women entrepreneurs and caregivers by slashing penalties on work and investment.
“Women comprise 48% of the Georgia workforce and are breadwinners in 40% of Georgia homes. As women’s earnings increase, so do their tax burdens. Thus, they are sensitive to the impacts of tax policies,” Onwuka told the committee. “Increased take-home pay provides an important cushion against rising prices. Women overwhelmingly drive the spending and investing decisions of households. According to one analysis, women control or influence a staggering 85% of consumer spending. They are acutely aware of the rising cost of living,” she went on to say.
Georgia’s push comes amid a national wave of fervor for tax cuts. States like Texas and Florida thrive without income taxes, boasting robust economies and attracting massive numbers of new residents fleeing high-tax states. A Georgia Public Policy Foundation report presented Monday echoed that and projected up to 100,000 new jobs over a decade if the plan passes.
Wrapping up the hearing, Chairman Tillery signaled strong momentum. “It is not a question of if we go to zero, it’s when and how we take our income tax to zero,” he said. “It’s an issue of competitiveness,” he said. The committee plans one more session before tabling recommendations, with full elimination eyed for phased implementation starting in 2027.
For women juggling careers, child care, and household budgets, the stakes couldn’t be higher. As inflation bites and affordability crunches hit home, policies that prioritize economic freedom over government largesse offer real relief. Georgia’s experiment could set a precedent—or a cautionary tale—for the rest of the nation.