Income complicates consumption tax

Republicans could face a problem when it comes to replacing Georgia's income tax. Some GOP lawmakers want to instead replace it with an expanded sales tax.

The problem comes when there is an increase in income for the richest 1-percent. An analysis from Standard & Poor's Ratings Services found it caused a drop in the growth rate of state tax collections.

Georgia relies on income taxes to provide for half of the state's funding. When a state relies heavily on sales tax the drop in state tax collections appears more pronounced. When a state relies heavily on income tax the state is likely to see less-severe revenue losses.

So far Senior Republicans have not made a serious push to replace the income tax.

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