Mississippi Governor Tate Reeves is urging legislators to push forward with plans to phase out the state’s income tax, despite opposition.
Speaking at a conference in Flowood, Reeves emphasized that eliminating the income tax would unlock Mississippi’s economic potential, encouraging growth and attracting businesses.
Mississippi is already reducing its income tax under a 2022 law, aiming for a top rate of 4% in two years.
Reeves, alongside other Republican leaders like House Speaker Jason White, argued that cutting taxes would spur job creation and further improve the state’s budget, citing Amazon Web Services’ plans to build data centers in Mississippi.
White also expressed his desire to halve the state’s 7% sales tax on groceries.
However, some lawmakers, like Senators Jeremy England and Josh Harkins, are advocating for caution, drawing attention to the need to maintain funding for key obligations and avoid a fiscal crisis like the one Kansas experienced after implementing large tax cuts.
The debate comes ahead of the 2024 legislative session, where tax reform will be a major topic of discussion.
Supporters like House Ways and Means Committee Chairman Trey Lamar are pushing for bold action, framing it as a return of taxpayer money, while critics remain concerned about the potential for revenue shortfalls impacting public services.
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