Big Georgia income tax cuts would come with costs to residents

ATLANTA — Republican senators are pitching giant income tax cuts to make Georgia more affordable, a plan that Democrats warn could lead to fewer government services or sales tax hikes.

The income tax relief proposal, which passed the state Senate last week, would exempt the first $50,000 of annual earnings by an individual and $100,000 for a married couple while lowering the income tax rate.

To fund such sweeping tax cuts, the Senate’s Republican majority is seeking to end tax breaks for new data centers and other business interests. But eliminating those tax breaks would save less than $3 billion a year, and the income tax overhaul would cost the state government $6 billion.