Mississippi gov touts economic growth from eliminating state income tax

Mississippi is set to become the 10th state to eliminate the state income tax, with Republican Gov. Tate Reeves hailing this move as “Mississippi’s moment.” In an exclusive interview with Fox News Digital, Governor Reeves expressed his excitement about the anticipated economic boom that eliminating the state income tax will bring.

The bill signed into law by Governor Reeves in March will gradually reduce Mississippi’s state income tax from 4% to 3% by 2030, with the ultimate goal of completely eliminating it. Reeves believes that this move will make Mississippi more competitive with neighboring states like Texas, Florida, and Tennessee, which already have no state income tax.

The governor pointed to the positive impact that reducing the state income tax has already had on Mississippi’s economy, with over $32 billion in new capital investment in the last four years, the lowest unemployment rate in the state’s history, and record levels of employment. Mississippi also had the second-fastest growing economy and the fourth fastest-growing per capita income in the country in 2024.

While President Donald Trump has proposed tax hikes for millionaires as part of his budget agenda, Governor Reeves made it clear that he opposes raising taxes on anyone. His focus is on reducing taxes for hardworking Mississippians and Americans, believing that lower taxes will incentivize more people to work and increase income levels.

Despite differing views on tax policy, Governor Reeves dismissed concerns over President Trump’s tariff policies, citing Mississippi’s success in growing its economy over the past few years. He highlighted the state’s potential for manufacturing growth and emphasized the importance of investing in workforce training.

Looking ahead, Governor Reeves expressed confidence in Mississippi’s continuing economic growth. The state has also been at the forefront of efforts to improve government efficiency, with the state auditor Shad White leading the charge to identify and eliminate waste in state government.

As Mississippi prepares to eliminate its state income tax and continue its economic boom, Governor Reeves remains committed to reducing government spending and promoting efficiency. He believes that these efforts will not only benefit Mississippi but serve as a model for government reform at all levels.