Kemp announces another $1 billion tax cut

Governor Brian Kemp has announced a new tax rebate of more than $1 billion for Georgians aimed at providing relief to families, especially those affected by Hurricane Helene, as part of his mid-year budget proposal to the General Assembly in January.

For the second time in three years, Governor Brian Kemp is giving Georgians a tax break worth more than $1 billion.

Kemp said Tuesday that he will include the reduction in the semi-annual budget that he will submit to the General Assembly in January. He said the extra money will come in handy, especially for Georgians who suffered losses from Hurricane Helene.

“We all know that even if inflation has fallen, high prices have not,” he said. “Families see that every day when they go to the grocery store or to the gas station. People shouldn’t have to deal with that extra burden, especially after a tragedy.”

Tuesday’s announcement was the second tax cut measure the governor has issued in recent weeks. Kemp temporarily suspended the collection of state taxes on gasoline and other motor fuels shortly after Helene hit large parts of southern Georgia and the Augusta region.

The governor proposed a similar tax credit worth about $1 billion two years ago. The General Assembly approved that reduction during the 2023 legislative session.

Under the new tax credit, individual tax filers will receive $250. A single filer who is the head of his or her household will receive $375, and married couples filing jointly will receive $500.

Kemp said the state can afford the cut because conservative budgeting has helped the state build a huge budget surplus. He said he would rather return that money to taxpayers than put it into new government programs.

“This is one-time money … a way for us to use our excess surplus to give it back to the people we think can use it best,” he said. “The biggest mistake the state could make would be to grow a government with one-time money.”