When Georgia lawmakers return to Atlanta this week, a long-simmering tax debate is back on the table. Senate leaders are weighing cuts to tax credits and exemptions as a possible way to offset the cost of eliminating the state income tax, a proposal that would reshape Georgia’s finances for decades.
The idea has momentum, ambition, and plenty of risk baked in.
A long-standing political goal gains new urgency
For years, conservative leaders in Georgia have floated the idea of scrapping the state income tax. This session feels different.
Lieutenant Governor Burt Jones, now openly preparing a run for governor, has made income tax elimination a central plank of his agenda. He has said flatly that the question is no longer if Georgia goes to zero, but when and how.
That is bold talk in a state where the income tax brings in roughly $16 billion a year. Georgia’s total state budget sits near $37.7 billion, which means wiping out the income tax would punch a hole big enough to swallow almost half of general fund revenues.
Even supporters admit this is not a tweak around the edges.
Jones’ allies argue the state’s strong revenue growth, fueled by population gains and consumer spending, gives Georgia a rare window to rethink how it raises money. Critics see something else entirely: a gamble that could strain schools, health care, and transportation if the math does not work out.
The debate is about to move from slogans to spreadsheets.
Why tax credits are suddenly under scrutiny
The clearest signal of how leaders plan to pay for income tax repeal came from Blake Tillery, a Republican from Vidalia and chair of the Senate Appropriations Committee.
Tillery, who is also campaigning to succeed Jones as lieutenant governor, is leading a Senate study committee focused on eliminating the income tax. That panel meets again this week, and its work has already narrowed in on one uncomfortable reality.
Georgia hands out a lot of tax breaks.
State tax credits and exemptions reduce annual revenues by an estimated $30 billion, according to legislative analysts. That figure includes everything from sales tax exemptions on groceries to industry-specific credits designed to attract investment.
Some of those credits are politically untouchable. Others, not so much.
In recent weeks, the Georgia Department of Audits and Accounts has released reviews of more than a dozen credits and exemptions, measuring whether they actually deliver the economic benefits promised when lawmakers approved them.
The findings vary, but the implication is clear. Some incentives cost the state hundreds of millions of dollars with little hard evidence of payoff.
That has put tax credits squarely in the crosshairs.
What the audits are revealing so far
The audit reports do not recommend policy changes outright. They do, however, provide lawmakers with ammunition.
Several credits reviewed showed weak oversight, limited data collection, or outcomes that were difficult to measure. In plain terms, the state often cannot say with confidence whether certain tax breaks create jobs, raise wages, or expand the tax base.
One audit noted that agencies responsible for administering credits lacked the authority to deny claims, even when documentation was thin. Another found that sunset dates were routinely extended without fresh analysis.
The conversation inside the Capitol has shifted as a result.
Lawmakers are now openly discussing trimming or eliminating credits that fail basic cost-benefit tests. The logic is straightforward: if Georgia wants to give up $16 billion in income tax revenue, it needs to stop leaking money elsewhere.
The types of incentives under review include:
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Credits tied to specific industries where job creation has slowed
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Exemptions that primarily benefit higher-income households
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Programs with no clear performance benchmarks or reporting rules
This is where theory meets politics, and friction follows.
The numbers behind the proposal
Supporters of income tax repeal often point to states like Florida and Texas, which operate without a personal income tax. Georgia, they argue, could become even more attractive to businesses and retirees by following suit.
The numbers, though, are stubborn.
Below is a simplified snapshot of the fiscal challenge lawmakers are wrestling with:
| Item | Estimated Amount |
|---|---|
| Annual income tax revenue | $16 billion |
| Total state budget | $37.7 billion |
| Annual value of tax credits & exemptions | ~$30 billion |
| Potential savings from cutting select credits | Unknown, under review |
Even aggressive cuts to tax credits would not fully replace income tax revenue on their own. That reality has led some lawmakers to quietly acknowledge that any path to zero would likely be gradual.
Phased reductions. Trigger mechanisms. Revenue benchmarks.
Those phrases are starting to circulate more often in committee rooms.
Political ambition meets fiscal caution
The timing of this push is no accident.
Jones is widely expected to run for governor in 2026, and Tillery is positioning himself as his natural successor. Championing tax elimination plays well with primary voters and fits neatly into a broader low-tax message.
Yet even within Republican ranks, there is hesitation.
Rural lawmakers worry about school funding. Urban legislators point to transit and public safety needs. Some business groups fear that cutting targeted credits could hurt sectors that rely on them, like film production or manufacturing.
Democrats, meanwhile, argue the entire premise is flawed. They warn that removing the income tax would force Georgia to rely more heavily on sales taxes, which tend to hit lower-income residents harder.
The study committee is expected to hear from economists, agency heads, and advocacy groups over the coming months. No formal bill to eliminate the income tax is expected immediately.
