Attention to detail – a phrase used in classrooms, locker rooms, and workplaces across the world. The basis of the phrase is if you pay attention to the little things, the big things will come together and work out as intended.
Detail was not paid attention to by someone, or multiple people for that matter, in the Mississippi Senate when drafting what lawmakers touted as a “fiscally responsible” and “cautious” way to phase out the state’s personal income tax.
After months of opposing opinions being voiced and weeks of cross-chamber infighting, the House of Representatives made a surprising move on Thursday. It dished its own plan to eliminate income tax on a concrete, 12-year schedule and concurred with the Senate’s plan – one intended to immediately cut the grocery tax and phase out the tax on work based on how the economy is doing. In political talk, the latter is often referred to as “triggers,” something that can only happen after specific conditions occur.
During a press conference at the capitol earlier this week, Senate Republicans gathered to present their plan that included reducing income tax from 4% to 3% between 2027 and 2030. Afterward, tax rates would continue to drop until reaching 0%, contingent on meeting the annual economic growth triggers. The bill as vocally presented flew through the Senate with some Democratic support and was sent to the House.
The only problem? The trigger phase as presented by the Senate during that press conference was botched by a minor yet major typo in the bill’s text. It can be blamed on an errant decimal point or errant percentage mark. Instead of saying revenue growth over spending must reach 85% for a further drop in the income tax, the bill reads, “.85%.” This means the state’s economy would barely have to grow for income tax to continue being phased out after 2030.
Circling back to attention to detail, the Senate’s lack thereof was punctuated by the House’s full attention to detail. Sources confirmed that leading members of the House noticed the typo and purposely pounced. Instead of walking down the hall and asking the Senate for clarification, or allowing the bill to go to conference where the details could be hashed out and the typo remedied, the House quickly made its move and decided to pass the Senate’s plan as written on Thursday. On Friday morning, the House doubled down and tabled a motion to reconsider, sending the bill to Republican Gov. Tate Reeves to sign. In the end, it’s what the House wanted: a way to speedily eliminate the income tax without triggers that might be challenging to set off.
Republican House Speaker Jason White and Republican Lt. Gov. Delbert Hosemann, both of whom have taken part in social media scuffles involving tax reform, have so far been mum on the typo. Outside of executing his presiding duties on Friday, White did not mention the mix-up during proceedings. But Reeves, a staunch proponent of eliminating income tax in a quick manner, did weigh in. He took to social media Thursday afternoon, seemingly acknowledging the typo, and said he would sign the bill as is.
“I am looking forward to receiving this bill tomorrow (I hear there are those who desire future tweaks to this law, and those can certainly be considered in future legislation). Today is a day for celebration,” Reeves wrote, giving credit to White and House Ways and Means Chair Trey Lamar.
Following the House’s decision Friday, Reeves returned to social media and further confirmed he will be signing the bill.
While the latest oddity inside the capitol may go down as something like “the typo heard across the state,” Reeves did make a point worth harping on – the speed at which income tax is eliminated can be modified in the future. That’s why lawmakers return to Jackson each and every January. Additionally, another piece of tax reform (remember that each chamber filed one of its own) can be debated during the waning weeks of the current session and sent to the governor as a second option if both sides are willing.
For now, though, it looks as if Mississippi is on the road toward joining the likes of Tennessee, Texas, and Florida, among others, in not having an income tax. The hope is the metaphorical road will be as smooth as the approved tax plan promises literal roadways to be with a new line of revenue going to the Mississippi Department of Transportation through an increased excise tax on fuel.
And for the record, the bill heading to Reeves isn’t a total loss for the Senate. Typo aside, Hosemann and company will get what they wanted with a fifth benefits tier being added to the state’s public employees’ retirement system, something intended to help rectify concerns about the program’s long-term financial viability.
