Mississippi's Republican-led Legislature is debating a significant tax cut plan that would eliminate the state income tax. While House leaders propose a comprehensive overhaul, Senate leaders advocate for a more cautious approach, citing concerns about past tax cuts leading to budget shortfalls. Governor Tate Reeves supports income tax elimination but opposes offsetting increases in sales or gasoline taxes.
Mississippi’s Republican governor intent on income tax cut even if states receive less federal money.But just eight years ago, headlines read:On the chopping block: Mental health, universities.Another great tax cut debate has begun in the Mississippi Legislature, a recurring theme in recent years with state coffers relatively flush and the economy cooking just below a boil.
Lawmakers in a few years leading up to the slump had enacted more than 50 tax cuts, from large to small, including what was at the time the largest tax cut in state history to be phased in over years. But their spending had increased.Then-Gov. Phil Bryant was forced to make emergency mid-year cuts to the state budget five times and to raid the state’s “rainy day” savings account from 2016-2017.
House leaders say the time to enact a long-championed tax structure overhaul and elimination of the income tax is now — do it while we can. In large part because the House plan includes a long called for steady stream of money for transportation infrastructure — a 5% sales tax on gasoline — and a cut in taxes on groceries, many House Democrats appear to be on board with the proposal. It’s unclear whether Senate Democrats would lean more towards a House or Senate approach.
The debate will not be on whether to cut, but how and by how much — a battle of moderation versus bold action.As a nonprofit newsroom, we rely on reader support to make our work possible. If you enjoyed this article, please consider donating today to support our award-winning journalism. We may write the stories, butLook for the"Republish This Story" button underneath each story.
MISSISSIPPI LEGISLATURE TAX CUTS INCOME TAX SALES TAX GASOLINE TAX
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