Residents across Georgia, including those in Valdosta and Lowndes County, face rising household expenses, a key issue that both competing candidates for Georgia governor are now addressing with distinct proposals.
Democrat Keisha Lance Bottoms, the former mayor of Atlanta, is advocating for a plan that would allow local governments to exempt sales taxes on groceries, qualifying take-home family meals, baby formula, diapers, and feminine hygiene products. Under her proposal, cities and counties would have the option to opt in, either permanently or temporarily, especially when grocery prices experience surges. To assist with this transition, Bottoms has put forward a one-year $250 million "Local Tax Relief Stabilization Fund" that local governments could access. Bottoms stated her proposal is "very simple. It makes common sense," noting that while the state of Georgia does not tax groceries, local municipalities do. Her platform also includes eliminating the income tax for teachers.
However, Bottoms’ plan faces questions regarding its financial and operational viability. Clint Mueller, deputy director at the state association that represents counties at the state Capitol, pointed out that sales tax constitutes a significant portion of local government revenue, particularly in rural communities with limited commercial activities. Mueller also noted that it is unclear whether such exemptions would be decided by local governments themselves or if voters would approve them in a referendum. He questioned who would make the decision to present such a measure to local voters, citing the complexity of a county like Gwinnett, which has 17 municipalities, all with negotiated agreements on sales taxes.
Danny Kanso, the vice president of public policy at the nonprofit Georgia Budget and Policy Institute, indicated that while eliminating these taxes would primarily benefit lower-income families more than an income tax cut, it remains to be seen how local governments would compensate for the resulting revenue gap. Kanso suggested that "revenue substitutes that could be found" might make the proposal more palatable for localities.
Republican Rick Jackson, a businessman in the healthcare industry, is proposing a different approach to affordability. His plan includes a 50% cut in the state income tax for all taxpayers and a sales tax exemption on some household utilities. Jackson also advocates for an automatic gas tax suspension when fuel prices surge, a property tax freeze to allow officials time to reconsider how local governments assess property values, and the elimination of taxes on tips. Jackson stated his plan aims for "immediate relief at the pump, on the monthly utility bill and in the paychecks of working Georgians." He also pledges an 'intelligent' Medicaid expansion, though specifics on this part of his proposal are limited.
Jackson’s proposals also present financial and operational challenges. Kanso estimated that halving the state income tax could cost the state budget more than $8 billion, with no clear indication of how that revenue would be replaced. Kanso described it as "a hugely expensive proposal and not a lot of indication of how that would be paid for, or where the tax burden would be redistributed to, or what spending cuts would be made to achieve that." Similarly, Kanso noted that while Jackson’s tax cuts on household utilities and fuel would assist lower-income families, the state’s method for funding these proposals without cutting services or raising other taxes remains undefined.
Ultimately, both candidates' proposals are prompting questions about how the state and local governments would manage the fiscal implications. Kanso observed that many do not want to discuss "the how versus the what," emphasizing that these details are necessary to determine the overall positive or negative impact of such plans.