The Obama tax plan would allow portions of the 2001 and 2003 tax cuts to expire, resulting in tax hikes beginning in 2011 for small businesses and those earning over $250,000. According to projections, this would significantly impact Georgia's economy. Specifically, from 2011 to 2020 Georgia would lose an average of 21,481 jobs annually, see household disposable income decrease by $7,793 on average per year, and see total individual income taxes increase by $12,721 million annually.
1. THE EFFECTS OF THE OBAMA TAX PLAN
Georgia
President Obama’s tax plan would allow portions TOTAL EMPLOYMENT
of the 2001 and 2003 tax cuts to expire, resulting in Annual Change in Jobs
steep tax hikes beginning in January 2011 for small
2011 2015 2020
businesses and those earning $250,000 or more. 0
The tax hikes would significantly affect the economy
–3,000
in Georgia, most notably in the number of jobs and
change in personal income. –6,000
–9,000
Among the results, from 2011 to 2020, the state
–12,000
of Georgia would:
• Lose, on average, 21,481 jobs annually. –15,000
• Lose, per household, $7,793 in total disposable
–18,000
personal income.
• See total individual income taxes increase by –21,000
$12,721 million. –24,000
–27,000
Source: Heritage Foundation calculations based on the IHS Global
Insight U.S. macroeconomic model, and data from the U.S. Census –30,000
Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
–27,134
REAL DISPOSABLE INCOME TOTAL INDIVIDUAL INCOME TAXES
Annual Change per Household Annual Change in Millions of Dollars
$1,578.2
2011 2015 2020
$0 $1,600
–$100
$1,400
–$200
$1,200
–$300
$1,000
–$400
–$500 $800
–$600
$600
–$700
$400
–$800
$200
–$900
–$1,000 $0
2011 2015 2020
–$986.43
Chart GA • Obama Tax Plan by State heritage.org
2. THE EFFECTS OF THE OBAMA TAX PLAN
Change in Employment in Georgia
Average Annual Change in Total
Employment, 2011 to 2020, by
9 Congressional District
Jobs Lost: 800–1,399
Jobs Lost: 1,400–1,599
Jobs Lost: 1,600–1,799
10
Jobs Lost: 1,800–2,320
6
11
7
5 4
13
3
12
8
2
1
State: 21,481 jobs lost annually on average
Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S.
Department of Labor, Bureau of Labor Statistics.
Map GA • Obama Tax Plan by State heritage.org