Carson: More Take Home Pay Act Prioritizes Families

Editor’s note: the following was submitted by State Rep. John Carson (R-Marietta), who represents a portion of Woodstock and southeast Cherokee County in the Georgia House of Representatives.

If you pay income taxes in Georgia, you already know that our state’s tax system is not working for families. Under the Gold Dome, I meet moms and dads, employees and business owners alike, who say as much. They testify daily that the weight of our state’s broken tax system rests on their paychecks, and often feel penalized for their hard work. As a CPA, I see the way our problematic tax structure affects families firsthand and wholeheartedly agree that something must be done.

In Georgia, we proudly tout our status as the number one state for business. Though we have much to be proud of, a comparison of our income tax rates to other Southeastern states reveals that lawmakers can go further to promote job and business growth. Currently, we’re ranked as the 9th worst state for income taxes and 36th in business tax climate. There is no reason why our taxpayers should face unfair- and unnecessary- disadvantages that our closest neighbors don’t experience.

Lawmakers often run on a platform of lower taxes and more jobs. After more than five years of study committees, research panels, and data collection, it’s time for the legislature to tackle our outdated tax laws and replace them with a solution that benefits Georgia families.

That’s why, a couple of weeks ago, I was pleased to stand with House Republican leaders and announce the More Take Home Pay Act. The Act reforms Georgia’s overcomplicated tax system, allowing taxpayers to keep more of their income while encouraging job growth. It’s time to act.

The More Take Home Pay Act will benefit families. Under this bill, the average Georgia family of four making $48,000 will keep an extra $400 annually. That’s a real, tangible result that empowers them to make more personal choices with their money. Most importantly, this bill shifts power away from the state and toward families. Additionally, it eliminates tiered income brackets, creating one flat tax that applies to all Georgians and closes many tax loopholes that benefit special interests rather than working families.

The More Take Home Pay Act encourages job growth by benefitting innovators, business owners, and entrepreneurs by allowing them to reinvest their business income into their venture. It will accomplish that by lowering Georgia’s personal and business income tax rate from six percent to four percent, and moving to a broader, fairer consumption-based model.

Like the Fair Tax, the More Take Home Pay Act moves away from our income-tax reliant system to one that benefits from a consumption-based structure. To ensure responsible budgeting and revenue neutrality, we’re proposing a low tax on stable and predictable goods like groceries, cigarettes, and telecommunication services (all of which are taxed, but with inconsistencies). As a result, the More Take Home Pay Act provides more stable, responsible funding for the state, allowing Georgia to more predictably budget for our greatest priorities like education, transportation, and our court system.

Since announcing the More Take Home Pay Act, opponents of tax reform have already begun spreading misinformation about the bill in effort to preserve the status quo. While I agree that taking up tax reform will not be easy, it is undeniably needed. One thing is for sure, their empty rhetoric and high income taxes never created a single job. Additionally, this bill is far from its final form. Like all bills, it will go through the legislative process and many changes can be expected, but doing nothing is not an option.

Georgia is the number one state for business because we understand that encouraging job creation has everything to do with creating a business-friendly environment. That means keeping taxes low and providing a stable economic climate.

Lowering the income tax and reforming the tax system will ensure that Georgia’s legacy continues to be one prosperity for its people. The More Take Home Pay means income tax rate cuts for all Georgians, not tax loopholes for some. Ultimately, this bill will create jobs and provide families with a higher quality of life.

The time to act is now. It’s your money, and you should keep more of it.

Representative John Carson represents the citizens of District 46, which includes portions of Cherokee and Cobb counties. He was elected into the House of Representatives in 2011, and currently serves as the Vice Chairman on the Intragovernmental Coordination Committee, and Secretary on the Energy, Utilities & Telecommunications and Insurance committees. He also serves on the Ways & Means and Transportation committees.

Photo credit: Georgia General Assembly