Bill review: Income Tax Reduction Act of 2026 (GA)#68
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DTrim99 wants to merge 1 commit intoPolicyEngine:mainfrom
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Bill review: Income Tax Reduction Act of 2026 (GA)#68DTrim99 wants to merge 1 commit intoPolicyEngine:mainfrom
DTrim99 wants to merge 1 commit intoPolicyEngine:mainfrom
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I'm not sure why people are worse off under this bill. |
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2032 Tax Credit Sunset — What It Would AffectThe bill's blanket sunset (Jan 1, 2032) covers ALL credits against GA taxable net income. Here's what PE-US currently models for GA: PE-Modeled Credits (parametrically modelable)
These are all listed in the non-refundable credits parameter for 2026: Credits PE Does NOT Model (structural — can't zero out)Georgia has dozens of additional credits that PE-US doesn't implement:
These are mostly corporate/industry credits that don't directly affect household distributional results, but matter for the total fiscal picture. Modeling the SunsetThe PE-modeled credits (CDCC, CTC, low-income, itemizer) could be zeroed out parametrically for |
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Bill Review: Income Tax Reduction Act of 2026
Reform ID:
ga-sb476| State: GABill text: https://www.legis.ga.gov/legislation/72977
Description: Reduces Georgia income tax rate to 4.99% and increases standard deductions to $50,000 for single filers and $100,000 for joint filers, effective January 1, 2026.
Merging this PR will publish the bill to the dashboard.
What we model
gov.states.ga.tax.income.main.single[0-5].rate(all filing statuses)gov.states.ga.tax.income.deductions.standard.amount.SINGLEgov.states.ga.tax.income.deductions.standard.amount.JOINTgov.states.ga.tax.income.deductions.standard.amount.HEAD_OF_HOUSEHOLDgov.states.ga.tax.income.deductions.standard.amount.SEPARATEgov.states.ga.tax.income.deductions.standard.amount.SURVIVING_SPOUSEWhat we don't model
Validation
External estimates
Note: No official fiscal note has been published by the Georgia Office of Planning and Budget as of the encoding date.
Back-of-envelope check
PE vs External comparison
Verdict: PE estimate (-$5.01B) falls between the net estimate (
$3B after credit repeals we don't model) and the gross estimate ($6.8B without offsets). This is expected: PE models the rate cut + deduction increase but not the ~$1B+ in credit repeals that partially offset the revenue loss. Difference from GBPI's $6.8B gross likely reflects different data sources (PE uses Enhanced CPS microdata vs GA DOR tax return data) and GBPI's 0.20pp rate cut assumption from the 2025 baseline.Key results
Decile impact
District impacts
Parameter changes
gov.states.ga.tax.income.main.{status}[0-5].rategov.states.ga.tax.income.deductions.standard.amount.SINGLEgov.states.ga.tax.income.deductions.standard.amount.JOINTgov.states.ga.tax.income.deductions.standard.amount.HEAD_OF_HOUSEHOLDgov.states.ga.tax.income.deductions.standard.amount.SEPARATEgov.states.ga.tax.income.deductions.standard.amount.SURVIVING_SPOUSEData quality notes
Reform parameters JSON
{ "gov.states.ga.tax.income.main.single[0].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.single[1].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.single[2].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.single[3].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.single[4].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.single[5].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.joint[0].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.joint[1].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.joint[2].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.joint[3].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.joint[4].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.joint[5].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.head_of_household[0].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.head_of_household[1].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.head_of_household[2].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.head_of_household[3].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.head_of_household[4].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.head_of_household[5].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.separate[0].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.separate[1].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.separate[2].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.separate[3].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.separate[4].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.separate[5].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.surviving_spouse[0].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.surviving_spouse[1].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.surviving_spouse[2].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.surviving_spouse[3].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.surviving_spouse[4].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.main.surviving_spouse[5].rate": {"2026-01-01.2100-12-31": 0.0499}, "gov.states.ga.tax.income.deductions.standard.amount.SINGLE": {"2026-01-01.2100-12-31": 50000}, "gov.states.ga.tax.income.deductions.standard.amount.JOINT": {"2026-01-01.2100-12-31": 100000}, "gov.states.ga.tax.income.deductions.standard.amount.HEAD_OF_HOUSEHOLD": {"2026-01-01.2100-12-31": 50000}, "gov.states.ga.tax.income.deductions.standard.amount.SEPARATE": {"2026-01-01.2100-12-31": 50000}, "gov.states.ga.tax.income.deductions.standard.amount.SURVIVING_SPOUSE": {"2026-01-01.2100-12-31": 50000} }Versions
1.555.3policyengine-us-data v1.48.0