Governor Calls for Teacher Tax Cut

Perdue Commits to $250 Tax Deduction for School Supplies

ATLANTA, GA – Governor Sonny Perdue announced today that he will include in his budget a $250 per year tax deduction for the purchase of school supplies by any Georgia teacher. Each year many teachers purchase school materials for their students for general use or special projects.

"We need to do everything we can to attract, keep and reward those who are working hard to educate our young people," said Governor Sonny Perdue. "This tax cut is recognition of the hard work our teachers are doing and displays our commitment to providing them with the resources they need to improve the quality of education for all of Georgia's children."

Governor Perdue's action was prompted by the October 4, 2004 signing of the Working Families Tax Relief Act of 2004 (WFTRA) by President Bush. The intent of WFTRA is to prevent federal income tax increases in 2004 and 2005 by extending certain tax provisions such as the deduction for classroom supplies purchased by teachers.

Each year the Georgia General Assembly adopts the Internal Revenue Code (IRC) as it exists on January 1 of the applicable year. The state is currently working from the IRC that existed as of January 1, 2004 which does not include the newly enacted WFTRA.

Governor Perdue is committed to extending the federal Tax Cut for Teachers to state income taxes and will account for the $1.5 million tax cut in his upcoming budget proposals. Under the Governor's plan, legislation will be submitted to the General Assembly for the adoption of the most recent IRC for 2005 with a proposal that the $250 deduction for teacher classroom expenses be made retroactive to include the 2004 tax year in addition to the 2005 tax year.

"Our budget remains tight, but our priorities are clear — education will continue to be our number one priority in the next legislative session," added Governor Perdue.