Deep red state makes major announcement about income tax: ‘We plant our flag’
Mississippi taxpayers have reason to celebrate as the state’s income tax is set to be gradually phased out, providing significant relief to residents. Republican Governor Tate Reeves is set to sign legislation into law that will reduce the income tax rate from 4.7% to zero over the next few years. The plan includes lowering the tax to 3% by 2030, eventually eliminating it entirely.
House Bill 1, also known as the “Build Up Mississippi Act,” not only eliminates the income tax but also reduces the grocery tax from 7% to 5%. Governor Reeves expressed his pride in signing the legislation, stating that Mississippi will no longer tax the work, earnings, or ambition of its people. He emphasized that the state is joining a select group of elite, competitive states that do not tax income, which will help attract businesses and promote economic development.
The governor believes that this move will bring about a transformation in Mississippi, making it a stronger and more prosperous state for future generations. The legislation has faced some opposition, with Democrats raising concerns about its impact on the public sector. However, supporters of the bill see it as a positive step towards creating a more business-friendly environment in the state.
This tax reform comes at a time when major changes are being proposed at the federal level. The expiration of the Tax Cuts and Jobs Act of 2017 has led President Donald Trump to pledge an extension of the tax cuts. Additionally, he aims to eliminate the federal income tax on tipped wages and overtime pay, fulfilling a promise to American workers.
Overall, the incremental elimination of Mississippi’s income tax is seen as a significant victory for taxpayers and a positive step towards economic growth. The state is poised to attract businesses and create a more competitive environment for residents. Governor Reeves’ bold move to sign this legislation into law showcases his commitment to fiscal responsibility and prosperity for the people of Mississippi.
