A new report by The Buckeye Institute, in partnership with the Georgia Public Policy Foundation, has highlighted the potential for significant economic growth in Georgia through tax reform. The report, titled Next Steps for Georgia Tax Reform, emphasizes the importance of continuing to reform tax policies to maintain competitiveness and attract more workers and businesses to the state.
According to Rea S. Hederman Jr., executive director of the Economic Research Center at The Buckeye Institute, incremental tax cuts in Georgia could lead to substantial economic benefits. He stated, “Georgia will attract and keep more workers and businesses” by cutting tax rates gradually.
Kyle Wingfield, president and CEO of Georgia Public Policy Foundation, acknowledged the significance of tax reform in maintaining Georgia's economic edge. He expressed gratitude to The Buckeye Institute for outlining ways to enhance the state's competitiveness.
The report utilized a dynamic scoring model called STELA to analyze different tax reform scenarios and their potential impacts on Georgia's economy. Four scenarios were evaluated to provide policymakers with insights into the outcomes of each proposal.
One scenario involved an incremental personal income tax cut, which the report projected would generate billions in economic growth, business investment, consumer spending, and new jobs over the years. Another scenario focused on eliminating the corporate income tax, while a third scenario proposed a substantial personal income tax cut over a five-year period.
However, not all scenarios yielded positive results. A scenario involving a personal income tax rate reduction and elimination of tax credits was projected to have no significant impact on economic growth or job gains.
The authors of the report, including Rea S. Hederman Jr., Zachary D. Cady, and Trevor Lewis from The Buckeye Institute, ensured the accuracy of their findings through a double-blind peer review process. The full methodology and technical details are available in the report for validation purposes.
Overall, the Next Steps for Georgia Tax Reform report presents a comprehensive analysis of the potential economic benefits that could be unlocked through strategic tax reforms in Georgia. By implementing the recommended measures, the state has the opportunity to stimulate economic growth, attract investment, and create new job opportunities for its residents.