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SENATE REDUCES UNEMPLOYMENT TAX RATE
JACKSON – The Senate today passed a $20 million tax cut for Mississippi job creators, Lt. Gov. Tate Reeves said.
Senate Bill 2808 goes to the House for consideration. The bill, sponsored by Finance Chairman Sen. Joey Fillingane, R-Sumrall, would reduce the unemployment tax rate on Mississippi employers.
“Mississippi needs a serious discussion about creating a flatter, fairer tax policy that encourages long-term economic growth,” Lt. Gov. Reeves said. “Reducing the unemployment tax is simply one step toward that goal. In the coming weeks, I will present my plan to reduce both individual and business taxes to allow taxpayers to keep their dollars to invest in their communities. I look forward to continuing to work with Gov. Bryant to fight for tax relief for Mississippians this legislative session.”
Currently, employers must pay unemployment insurance taxes on a portion of employee wages. Statutorily, the tax rate is between 0.2 percent to 5.4 percent depending on economic activity, such as layoffs or job growth. Under Senate Bill 2808, the minimum tax rate drops to 0.0 percent, resulting in an up to $20 million tax cut for Mississippi employers.
The Unemployment Insurance Trust Fund is actuarially sound, which allows the employers’ tax rate to be lowered.
The bill also creates a sustainable workforce training fund, the Mississippi Works Fund. Approximately $10 million will be deposited into the fund in the first year, with about $5 million deposited into the fund in subsequent years. These dollars primarily will be used by the state’s system of community and junior colleges to meet the training needs of new jobs created in the state, as well as to help with job retention and increasing the capacity of Mississippi’s labor force pool.
