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Governor Nathan Deal
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Governor Nathan Deal - Georgia’s 82nd Governor (2011-2019)

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Home » Press Releases » Gov. Deal's remarks from tax reform legislation press conference

Gov. Deal's remarks from tax reform legislation press conference

February 20, 2018

Gov. Deal delivered these remarks at a press conference with legislators on February 20, 2018.


The Federal Tax Cut and Jobs Act, passed at the end of last year, has brought about many positive results around the country, including here in Georgia. In response to those improvements and the projected revenue windfall it will bring to our state, my office has been working closely with the House and Senate leadership over the past several weeks to devise a meaningful state tax reform plan that will benefit Georgia taxpayers in a fiscally responsible way.

Our aim is to balance our strong desire to keep more of the hard-earned money of our citizens in their pockets, maintain Georgia’s position as the No. 1 state in which to do business, protect our AAA bond rating – something we have secured for 20 consecutive years – and ensure the long-term economic health of our state. We have, together, crafted a solution to that need for balance in the face of these varied goals.

After working with the leadership represented here today, I am introducing legislation sponsored by Representative Chuck Efstration that combines the 2017 and 2018 tax reform bills currently being debated in the General Assembly, HB 821 and HB 918. I’m confident this legislation will be quickly passed and transmitted to my desk.

HB 821 is the 2017 Internal Revenue Code update that we annually revise to adopt some federal provisions. The bill also eliminates the state tax on jet fuel, helping us to keep Georgia competitive as a major international hub of commerce.

HB 918 is the 2018 Internal Revenue Code update, and it has been amended to include, among other things, the following:

  • This bill doubles the standard deduction for all Georgia taxpayers. As an example, for married taxpayers filing joint returns, the deduction increases from $3,000 to $6,000. 
  • It reduces the income tax rate for both individuals and corporations from 6 percent to 5.75 percent, beginning in Tax Year 2019.
  • It also includes a provision to further reduce rates from 5.75 percent to just 5.5 percent in Tax Year 2020.
  • This further reduction is subject to the approval of the General Assembly in 2020 and the sitting governor of that time. 
  • With this approach, we make clear to all our intent to further reduce the tax burden on our citizens while simultaneously providing a safeguard mechanism, should economic conditions take a downturn between now and then, ensuring that any changes made at a later date do not endanger the economic well-being of our state and fiscal integrity of the annual budget. 

This legislation represents one of the single largest income tax reforms in state history. In fact, it will amount to more than $5 billion in savings to Georgia taxpayers over the next five years.

To provide you with even more context, the individual income tax rate has not changed in Georgia since 1937. The corporate tax rate has not changed since the legislature set it at 6 percent in 1969. Further, the standard deduction has not changed since 1981. In a new and modern era, when the very nature of our economy has changed considerably since those long-passed decades, the reforms we are proposing today are certainly needed and would be a significant advantage to the current and future residents and companies that call Georgia home. 

This legislation marks a change not seen in generations. In reaching this momentous point, I am thankful for the valued input and cooperation of Speaker Ralston, Lt. Gov. Cagle, Chairman Jay Powell, Chairman Chuck Hufstetler, and the many other legislators and intellects who had a hand in crafting this legislation.

With the combined expertise of the many stakeholders who are affected included in this legislation, we are confident that our approach will see the quick passage of this bill through the House and Senate, at which time it will be immediately transmitted to my desk so that I may sign it into law. 

The sooner this bill is passed, the sooner I can sign it, and the sooner Georgia’s taxpayers can plan for the benefits from this much-needed and powerful reform when they file next year for the 2018 Tax Year.