Republican state representatives in Georgia are advancing the “Fair Taxation Act of 2014.” This act would eliminate both personal and corporate income taxes. However, sales taxes would rise to offset the loss of revenue. Additionally, it has been suggested that the reach of sales tax may be expanded, potentially to food, rent, health care, and tuition.
Proponents of the proposal say that state sales tax rates would need to increase by 3.0 to 4.8 percent in order to offset the loss of revenue. Opponents claim that the increase would have to be higher. According to taxrates.com, depending on the local municipality, the total sales tax rate in Georgia can already be as high as eight percent. No action will be taken on the bill until the 2014 legislative session.
Click here to read the text of H.B. 688.