Republican Senate President Pro Tem Phil Berger says there could be a joint Finance Committee meeting next week to look at a tax cut package for the budget, but some ideas are already being floated in the House. Republicans Bryan Holloway, Danny McComas and Dale Folwell are proposing an income tax exemption for small businesses (HB893). They want to allow a small business to subtract up to $50,000 of taxable income to reduce the tax burden.
Four House Democrats introduced a bill to reduce the corporate tax(HB920). Sponsors Michael Wray, Jim Crawford, Bill Owens and William Wainwright would make the same cut to the corporate tax rate as Governor Perdue included in her budget, from 6.9% to 4.9%. Republicans leaders have already said they want that cut in the budget. The same Democrats also (HB918) would allow a tax credit for home renovations. It would be capped at $1350.
House Republican John Torbett proposes fixing what he sees as an unfair tax advantage large corporations have over small businesses. His bill (HB899) would lower the small business tax rate over three years to the same rate imposed on a big company.
Then there is House Democrat Paul Luebke’s bill (HB879), which has a short title of “Raise Income Tax on Millionaires.” Under his proposal married couples making over $1 million would have a tax rate of 8.5%. They’re currently paying a rate of 7.75%. He doesn’t stop there. A head of household making over $800,000, an unmarried individual earning over $600,000 and a married person filing separately being paid over $500,000 would also pay the higher rate.