Summary
Gov. Tate Reeves signed a tax overhaul bill into law that phases out Mississippi’s income tax over 14 years, aiming to make the state more economically competitive.
Due to typos, the bill nullifies intended economic growth triggers, potentially accelerating tax elimination.
It also cuts the grocery tax from 7% to 5%, raises the gas tax by 9 cents, and changes public employee retirement benefits.
Critics warn of a $2.6B annual revenue loss, risking vital services in the nation’s poorest state. Officials remain divided on the bill’s long-term impact.
It’s one thing for states like FL, TX, and WA to do this, since they have tourism, oil, and/or high sales tax to make up for it. But Mississippi doesn’t have anything going for it except for an efficient use of the alphabet in its name. This will absolutely cause the state to crumble even more and become more of a welfare state.
When the rich technically make no income then regular working Americans end up paying more income tax than billionaires
Income tax disproportionately effects the poor unfortunately
No. Not really. That depends on the tax rates, my friend.
It sounds like it only goes to 0 if certain goals are met, otherwise it’ll go down to, and then stay at 3%.
So if they can’t figure something out like those other states, it won’t go to 0.
Still a bad idea, but it’s not a lets make it 0% right away then FAFO
Just a further thought…
It’d be interesting if the tax could automatically increase if these goals that were met, were no longer met.
So to go from 3% to 2% you need to generate an extra billion revenue, but if you lose that revenue it then climbs back to 3%.
It would really complicate the system… you’d essentially need to always be set up to charge income tax, but then have a variable rate that updates the systems maybe quarterly or yearly. But you couldn’t ditch the system entirely since you’d need companies to have a method to suddenly start charging it again if it had to go from 0% to 0.5%
It would really complicate the system…
I bet you could pitch it to TurboTax
Shit, I should delete my comment before they get any ideas.
As intended
I work remotely, so I can do my job from anywhere. Cost of living is cheap in Mississippi, and I would save considerably even factoring in the cost for private school for my kids.
I still would never move to Mississippi.
I also work remotely.
But I’m brown.
Nope, you live in a society.
Try working at home with unreliable power or water.
Try driving many tens of minutes to the nearest store on crumbling roads.
Retail employees and utility service employees will decline in their education.
Many people will lose their homes and live on the streets. You might have to move to a gated community, and pay for private police patrols.
There will be more fires as people live in the woods and need to cook or stay warm.
Doctors will leave the state when patients can’t pay, so hope you don’t get sick. You’ll have to live close to a way to get out of state for medical care.
Private school will become scarce and more expensive as teachers leave the state.
“Cheap place to live” is just another way of saying “I figured out how to pass my costs on to others.”
Good point!
All additional valid reasons not to live there.
My husband interviewed in Mississippi about 30 years ago and they set him up with a realtor to show him around. When he asked about schools she told him his kids wouldn’t go to public school and said the two choices were military school or church school. He saw a big black building across the railroad tracks and asked about it. She said, “that’s black wal-mart.” We did not move there!
eliminating revenue used for funding critical infrastructure will SURELY make mississippi look more attractive…
Big federal welfare state becoming a bigger federal welfare state. Congratulations on your self promotion!
