Mississippi Center for Public Policy
Continues Push for Total Income Tax Repeal
(Jackson, MS): The Mississippi Center for Public Policy continues to push for the elimination of the State Income Tax.
“The House has produced a plan that hands back to taxpayers much of the billion-dollar surplus in the state budget. Unfortunately, the counter-proposal that the Senate has now come up with leaves politicians free to spend that money instead,” said President & CEO Douglas Carswell. “The Senate plan cannot credibly be called a tax elimination plan. I am not certain that it does much to reduce the amount of tax people pay at all.”
Under the Mississippi House of Representatives tax plan:
- A Mississippian making a gross income of $40,000 a year would get an approximate $1,500 reduction in taxes through eliminating the income tax, according to a summary published by the House. This translates to an approximate net income increase of 3.8%. That would leave Mississippi workers with more money each month to spend on themselves and their families. It would make our state tax competitive, like Tennessee and Texas, neither of which have a state income tax anymore.
Under the Mississippi Senate tax plan:
- A Mississippian making a gross income of $40,000 a year would get an approximate $260 reduction in taxes. This would be a mere 0.65% net income increase.
- In addition, although the Senate plan removes the 4% bracket from the income tax, there is no path in the plan that aims towards the total elimination of the state income tax.
Senior Director of Policy & Communications Hunter Estes said, “Mississippians deserve to keep more of their own money. We’re glad that our legislators are coming together to recognize this. However, one of these proposals is far stronger than the other. Our political leaders ought to stick to the promises made to their constituents and commit to a full repeal of the income tax, as proposed within the House plan.”
The Mississippi Center for Public Policy believes the state needs real tax real tax relief, and repealing the income tax would be both a moral and economic good, leading to higher incomes, competitiveness, and prosperity for all Mississippians.
While both the Senate and House plans give commendable tax cut proposals, the House plan carries the most promise as a catalyst for true tax relief and long-term growth. Rather than merely giving Mississippians tax breaks that are well-intentioned but non-transformative, the time has come for state leaders to give the people meaningful tax relief. |
