Will Georgia earn the dubious reputation of passing the most misguided state tax changes of 2010? With the state's legislative session coming to a close, Peach State lawmakers are building an impressive body of work. After sending the governor bills that will cut the capital gains tax by 50 percent and exempt all retirement income for better-off seniors, the legislature this week is moving to take away the state's sole refundable low-income credit and authorize a statewide sales tax increase.
As a new ITEP report shows, the net impact of these changes would be to make the state's already-unfair tax system dramatically more unfair. The ITEP report shows that the current tax system actually redistributes income away from low-income families into the pockets of the best-off taxpayers — and that the proposed changes would make this inequity even worse.