TAX REFORM FOR GEORGIA:
THE GAME
Christine P. Ries
Professor of Economics
Georgia Institute of Technology
Atlanta, GA 30332
Generous Support and Assistance:
Georgia Public Policy Foundation
Center for Data Analysis
The Heritage Foundation
State Reform Simulator
About
Broaden Tax Base
Change Items Taxed and Excise Tax Amounts
Reimpose 4% Sales Tax on Food
Tax Selected Persoal and Household Services
Increase tax on cigarettes from $.37-.68
Rationalize tax on telecommunications
Change Exemptions and Deductions
Change Personal Exemption from $2700 to $5400
Change Dependent Deduction from $3000 to $5000
Change Standard Deductions :
Single: raise from $2300 to $6000
Married filing jointly: raise from $3000 to $12000
Married filing separately: raise from $2300 to $6000
Head of Household: raise from $2300 to $6000
Fair Tax Exemptions
Personal exemption $11,170
Dependent exemption $3960
Eliminate Itemized Deductions
Limit Itemized Deductions
$30,000 for single
$60,000 for married filing jointly
$30,000 for married filing separately
$30,000 for head of household
Sales and Use Tax Rate:
%
0%
12%
Sales Tax Base: $
132,447.5
Million
Personal Income Tax Rate:
%
0%
12%
PIT Base: $
119,732.3
Million
Corporate Tax Rate:
%
0%
12%
Corp Tax Base: $
11,230.0
Million
Revenue Impact of Simulated Tax Reform: $
0
State Government Revenue from Taxes
FY2012
Est. *
($ millions)
Your Simulated
Tax Reform
($ millions)
Revenue Impact
of Your Tax
Reform
($ millions)
Income Tax: Personal and Pass-Thru Business
8,118.9
8,118.9
0.0
Income Tax: Corporate
673.8
673.8
0.0
Sales and Use Tax
5,297.9
5,297.9
0.0
Select Excise Taxes
233.4
233.4
0.0
Tobacco Taxes
233.4
233.4
0.0
Telecommunications
0.0
0.0
0.0
Other Taxes
1,711.9
1,711.9
0.0
Total Tax Revenue
16,035.9
16,035.9
0.0
Current Code:
Simulated Results:
Income Tax: Personal and Pass-Thru Business
Income Tax: Corporate
Sales and Use Tax
Select Excise Taxes
Other taxes
Hover mouse over Pie Charts to see percentages of total revenue.
* Current Tax Laws and Regulations