Governor Tate Reeves continues to express his support for the elimination of the state income tax, something a lot of lawmakers are hoping will lead to job and population growth for Mississippi.
Both the House and Senate want to provide some form of tax relief for residents, but they remain at odds on just how to make that happen.
Big move in the push to eliminate the income tax!
We now have a bill that eliminates the income tax without raising any other taxes.
This would be a huge boon to our economy. Grateful for all those willing to be bold who are working throughout this process to get a great plan!
— Tate Reeves (@tatereeves) March 16, 2022
This week, the House sent the Senate a new version of their plan, making concessions on several key items the Senate had balked at. Number one of those would be their original plan to increase the state sales tax. That is no longer included in the House proposal. Due to that change, House members propose taking longer to phase in a grocery tax reduction from 7-4%. Plans to eliminate the state portion of car tag fees have also been withdrawn.
A plan in the Senate would immediately reduce the grocery tax from 7-5%, and suspend the 18-cent per gallon gas tax for six months. It also calls for the elimination of the 4% tax bracket over 5-8 years but does not eliminate state income taxes completely, as the House plan does.
House Speaker Philip Gunn is asking the Governor to endorse the House plan since it is the only plan with full elimination of the income tax. And that’s something the Governor has said he wants to see happen.
It remains to be seen whether legislators will work out a compromise.