| Yesterday, Gov. Tate Reeves signed the largest tax cut in state history into law.
Over the next four years, Mississippi will create the largest tax exemption in the country, become one of ten states to operate with a simple and fair flat tax, and lower its tax rate to 4%, the fifth lowest rate in the nation.
What does this mean for workers? It means that a single worker will not owe any taxes on the first $18,300 of earnings. For married workers, that number is $36,600. It means a 20% reduction in taxes on all remaining income. A working family near the household median in income will save over $800 a year. It also means Mississippi has become immediately competitive with surrounding states and taken a leap forward toward elimination of the income tax.
Yesterday’s signing ceremony for the Tax Freedom Act was the culmination of work that began in earnest in 2020, and really even years before that. Over the last two years, the discussion has had ups and downs, but the final product is good for Mississippians and drew bipartisan support in both legislative chambers.
Credit belongs to Gov. Reeves and Speaker Philip Gunn for painting a bold vision, to Lt. Gov. Delbert Hosemann for staying at the table and finding common ground, and to legislative leaders like Trey Lamar and Jason White in the House and Josh Harkins and Briggs Hopson in the Senate, who ultimately grinded out the details. There’s also unsung staff working behind the scenes, like the Speaker’s chief-of-staff Trey Dellinger and the Lt. Gov.’s chief-of-staff Nathan Upchurch, both of whom were instrumental. |
