Gov. Sonny Perdue announced Thursday night that he will completely eliminate the state income tax for the retirement income of Georgians 65 and older in his second term. This $142 million a year in tax relief will add to the over $2 billion in tax relief that the governor has delivered since taking office in 2003, his office said.
“If given the honor of a second term, this is my first promise to the people of Georgia. We will completely eliminate the state income tax on retirement income for seniors 65 and older,” said Gov. Perdue. “By not having to pay state income taxes, retirees can better cover the costs of prescription drugs and healthcare, or spend more time with their grandchildren.”
When Gov. Perdue took office in 2002, he inherited a $640 million deficit from the Barnes-Taylor administration, officials said.
His office said, "By focusing on priorities and streamlining government, Gov. Perdue turned the deficit into a $580 million surplus, helped create over 200,000 new jobs, and invested over $1 billion more for education – all while delivering over $2 billion in tax relief to Georgians."
The Perdue first-term tax relief included:
· Cutting the state income tax on retirement income for seniors in 2003
· Making the homestead exemption permanent
· Eliminating the gas tax for one month after Hurricane Katrina
· Reforming the corporate tax code to stimulate job creation
· Allowing small businesses to write off more expenses
· Passing the Teacher Tax Cut, a $250 exemption for the purchase of school supplies in the 2004 and 2005 tax year
· Exempting military income for Georgia National Guard members
· Providing a child-care tax credit for working families
Georgia taxpayers currently have one of the lowest state tax burdens in the nation, officials said. Based on 2005 data provided by the U.S. Census Bureau, Georgia has the 9th lowest per capita tax burden of any state in the nation – an improvement from 13th when Perdue took office.