Former Georgia Senator David Perdue is now running to be the next Governor of the state. But to win, he will have to defeat current Republican Governor Brian Kemp. We don’t take sides in election races, but what makes the race especially interesting is that Perdue wants to ax the state’s income tax. Right now Georgia is what we call an “income tax sandwich” because it is located in between Florida and Tennessee. Neither of these states have an income tax.
Perdue wants to phase the state’s tax rate from 4.75 percent to zero and he wants to use all the excess revenue from the billions of dollars given to the states to pay for the tax cut. Former US House Speaker Newt Gingrich has endorsed the idea.
We are already working with the pols in Arkansas, Mississippi, North Carolina, and Wisconsin to get to abolish their states’ anti-growth income taxes. The chart below shows which states don’t have personal income taxes. Imagine if the entire south would become a zero income tax region. How would New York or Illinois or California ever compete?