On Thursday, Gov. Tate Reeves signed a bill to overhaul Mississippi’s tax system into law. The income tax will be eliminated in about 14 years. Many lawmakers inadvertently voted for it because of typos. It is the law.
The bill also trimmed grocery tax and raised gasoline taxes.
Mississippi is on a path to becoming the first state to eliminate an existing state income tax when it is phased out in about 14 years.
Reeves said the law marks a turning point in the state’s history and would make Mississippi a magnet for corporate investment and workers from other states.
“Today is a day that will be remembered not just for the headlines, not just for the politics, but for the profound generational change it represents,” Reeves said at a bill signing ceremony in front of the Governor’s Mansion. “I must say, it feels like it’s been a long time coming, but after many, many, many years of hard work, we can all stand together and say that we have accomplished income tax elimination in the state of Mississippi.”
Typo Tax Bill
Mississippi is reducing its income tax rate to 4% from a previously passed tax cut being phased in. Beginning in 2027, the new law will reduce that rate by .25% over four years until it reaches 3%. In 2031, the tax will only be reduced if certain revenue “growth triggers” are met.
The law also reduces the sales tax on groceries from 7% to 5%, raises the gasoline tax from 18.4 cents a gallon to 27.4 cents a gallon over three years to fund infrastructure, and changes the contribution model of the public employee retirement system.
The Senate wanted a longer-term approach. The House bill with typos had the shorter-term plan with several growth triggers eliminated.
The errors were acknowledged.
“Some of y’all are focused on a typo in the bill, and I’d use the biblical analogy, let he who has not had a typo cast the first stone,” Lt. Gov. Delbert Hosemann said.
Mississippi relies on federal government funding, and some are worried about the loss of revenue.
Gov. Tate Reeves said the benefits would outweigh the costs: “We are saying to entrepreneurs, to workers, to dreamers: Mississippi is open for business, and we will not penalize your success. We are going to compete, and we are going to win.”
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So a state that takes Fed dollars to run basic services will now have less $ to run things? Are they hoping for more Fed $ from blue states?
Let’s hope it results in a tax free tidal wave across the nation. And why not? Every citizen deserves to keep every penny they earn. The Government wasn’t there doing any of the work. What will the Democrats do if they can’t tax and spend? You know besides tariffs there are many other creative ways funds can be generated for public works and national defense, public safety, etc…
You all heard about all those patents that expire after 17 years and all those copy writes that expire after the death of the creator? Well what if those intellectual property rights transferred to the government for a period of 3 years before they entered the public domain. Think about the trillions of dollars from royalties that could be generated to fund government without the need for taxation. There are so many creative ways to raise funds it’s ridiculous. What ever happened to the thinkers in our country?
Tennessee already does NOT have an income tax. Been so for years.
It’s of state’s that have it. I left that out.
Thanks.
🙂
“The bill also trimmed grocery tax and raised gasoline taxes.”
—FYI: The Repub controlled Arizona legislature LAST YEAR passed a bill ELIMINATING 100% of the state tax on groceries. NO SURPRISE: AZ’s ILLEGITIMATE, STOLEN ELECTION Commie-cRAT governor “CARTEL” Katie Hobbs immediately vetoed it. Even stupid and ignorant Commie-cRATS understand that they can NOT commit FRAUD, WASTE and ABUSE of taxpayer money UNLESS THEY HAVE THAT MONEY !!!