LT. GOV. REEVES ANNOUNCES TAXPAYER PAY RAISE ACT
Proposal would provide $400 million tax cut for Mississippians
RICHLAND – Lt. Gov. Tate Reeves unveiled his Taxpayer Pay Raise Act of 2015 today providing $400 million in tax relief to all Mississippians and encouraging economic growth for small businesses.
“In the last three years, two out of every three state employees received a pay increase,” Lt. Gov. Reeves said. “Now is the time for taxpayers to get a pay raise, too.”
The Taxpayer Pay Raise Act:
· Eliminates the 3 percent tax bracket levied on individual income,
· Reduces the overall tax burden on small business owners, and
· Removes the investment penalty, or franchise tax, on businesses’ property and capital.
“As a conservative, I believe government shouldn’t be in the business of picking winners and losers, and this plan reaches all Mississippians,” Lt. Gov. Reeves said. “As a conservative, I believe the tax code should be simple. My plan encourages capital investment in our state and promotes long-term economic growth.”
Senate Finance Chairman Joey Fillingane, R-Sumrall, will sponsor the bill.
“We’ve spent three years getting the state’s budget in order by reducing debt and ending the practice of spending one-time money on recurring expenses,” Fillingane said. “With strong budgeting practices in place, we can now look to providing tax relief to all Mississippians.”
The Taxpayer Pay Raise Act of 2015 will encourage more economic growth in local communities as individual taxpayers and local businesses see more money in their pockets.
Eliminating the franchise tax will allow local banks to direct funds back into the community as loans rather than to state government.
“Rather than writing a check to Jackson, local banks will have the ability to leverage this money into loans for houses, cars and other major purchases,” said Robert Barnes, President and CEO of PriorityOne Bank in Magee and legislative committee chairman of the Mississippi Bankers Association. “That can have a real impact on Main Street.”
Lt. Gov. Reeves’ tax reform proposal will allow Mississippi taxpayers to keep more of their hard-earned income and will increase the job-creating capacity of employers across the state, said Patrick Gleason, director of state affairs for Americans for Tax Reform.
“With other states across the country moving to reduce taxes, Lt. Gov. Reeves’ tax plan will ensure that Mississippi is able to compete with other states and countries when it comes to vying for jobs and investment,” Gleason said. “Lt. Gov. Reeves’ pro-growth proposal is the latest example that the best policy reforms are coming out of the states and not Washington, D.C.”
About a dozen states tax companies’ investment similar to Mississippi, and Mississippi’s tax is among the highest in the nation.
“Lt. Gov. Reeves’ tax plan will boost Mississippi’s competitiveness when recruiting new jobs to our state,” said Jay Moon, chairman of the State Workforce Investment Board and President and CEO of the Mississippi Manufacturers Association. “We are one of the few states in the nation that tax businesses for investing and growing, and that can make it difficult to lure new businesses. Eliminating the franchise tax will level the playing field and let people around the world know that Mississippi’s open for business.”
Eliminating the franchise tax will allow Mississippi businesses to invest and grow whether through new products or more jobs.
“Our state’s franchise tax is a penalty that discourages businesses from growing and investing in Mississippi,” said Hu Meena, president and CEO of C Spire. “The Lieutenant Governor’s proposal would eliminate that penalty and is an important first step in transforming Mississippi from the nation’s branch office to a place where businesses are born, mature and grow. Strengthening Mississippi-based businesses strengthens Mississippi and creates opportunity for every Mississippian. The Lieutenant Governor’s proposal recognizes that critical fact, and we fully support it.”