Tuesday, April 19, 2016

Tax Cut FOOD FIGHT!!!

The Leftenant Governor and the "State Newspaper" are a'feudin' over tax cuts.  Leftnenant Governor Tate Reeves celebrated the passing of tax cuts in a press release that was issued yesterday:


TAXPAYER PAY RAISE ACT HEADS TO GOVERNOR’S DESK

JACKSON – Lt. Gov. Tate Reeves said today Mississippi taxpayers are one step closer to seeing meaningful tax relief under legislation passed by the Senate today. The Taxpayer Pay Raise Act provides a $415 million tax cut over the next decade.

Senate Bill 2858, sponsored by Senate Finance Chairman Joey Fillingane, R-Sumrall, heads to Gov. Phil Bryant for consideration. Lt. Gov. Reeves proposed the bill over the past two years to reduce the tax burden on Mississippians and encourage more investment across the state.

“A flatter, fairer tax policy can grow the economy of our state and make Mississippi-grown businesses more competitive in the global marketplace,” Lt. Gov. Reeves said. “I am proud the Legislature has given Mississippians the opportunity to keep their hard-earned dollars in their pockets to spend at home.”

The plan includes:

*Eliminating the 3 percent tax brackets levied on income beginning in 2018. The bracket will be phased out over four years, providing individuals savings of up to $150 annually.

*Reducing the overall tax burden the estimated 160,000 self-employed Mississippians. Self-employed individuals will be able to deduct half of the self-employment taxes paid to the federal government by 2019. This includes a variety of sole proprietors such as lawyers, accountants, preachers, landscapers and child care workers.

*Removing the investment penalty, or franchise tax, on businesses’ property and capital. Over the next 10 years, this investment penalty on job creators will be phased out. Mississippi is one of the few states to have a franchise tax, putting the state at a competitive disadvantage when competing for jobs.

Eliminating the franchise tax alone would have grown the state’s GDP by $282 million and added 3,514 jobs within 10 years, according to a Mississippi State University study. The plan will be phased in over a 10-year period, allowing the state’s economic performance to grow while reducing taxes. 

Meanwhile, the Clarion-Ledger editorial board completely freaked out and went into hysterics with this front page editorial:


This headline was followed by an editorial printed on the front page - tactic that brings back shades of the old Jackson Daily News:

We are begging lawmakers and the governor, please — for the love of Mississippi — stop the madness. This isn’t hyperbole. We’re not being funny. We are completely serious. Please. Stop. The. Madness.

This legislative session has confounded a number of people as lawmakers have chosen to pass legislation pandering to different constituencies while ignoring serious issues like crumbling roads and infrastructure needs.

Over the weekend, the madness hit a fevered pitch. After agreeing to a budget that will provide deep cuts to just about every state agency and take money from the rainy day fund — actions required because of a lack of tax revenue — lawmakers have agreed to further cut corporate taxes.

This is unbelievable. Mississippi is broke, so the answer is to cut the sources of revenue remaining? Republicans and Democrats alike are questioning the wisdom of such irresponsible legislation, but legislative leaders continue to push forward.

House Ways and Means Chairman Jeff Smith, R-Columbus, basically is blaming the Senate, alluding to the fact that if it didn't pass the tax cut then the Senate — specifically Lt. Gov. Tate Reeves — would have killed all bond bills. It should have let him do it, if he thinks that is prudent. The fallout would be on him.

It’s not like the state is overspending. The recession saw to that first. Then, smart decisions by the Republican leadership that did not allow spending one-time money on recurring expenses has kept the state’s fiscal house in order.

No, Mississippi faces a budget disaster, in part, because of $350 million in tax cuts over recent years. That money is gone. Now lawmakers want to cut even more.

We were hopeful that any tax cut plans would not materialize this year. First, Gov. Phil Bryant signaled in his State of the State address that the current fiscal situation — he had just had to make mid-year budget cuts — meant any additional tax cuts were not prudent. Then, after the Senate passed a tax cut plan, the House gutted it — again saying current fiscal realities make it the wrong time.

The tax lawmakers want to cut is the franchise tax, a tax on the capital a company holds each year. It’s an unfair tax in many ways, and we support its repeal. However, repealing it should not be done in a vacuum. That revenue must be replaced some other place. And it should never — NEVER — be done when our state economy is shrinking, not expanding. (KF: The old dynamic v. static scoring debate.)

Reeves, the main proponent of pushing through this tax plan now, argues the tax cut will help spur the economy because corporations will reinvest that money and create jobs. However, history has shown us that this is unlikely, especially during uncertain economic times.

If you actually want to read the bill, click on this link and scroll down to the conference report. 

43 comments:

Anonymous said...

Any tax cut is good. If there isn't enough money to satisfy the govt. they should think about cutting the waste. If they cut the waste, over spending, useless programs, and benefits to politicians we could see some real tax cuts.

Anonymous said...

We're already a welfare state--we couldn't tax our way out of our state government's bloated spending. Why do we need a community college in every county? (or so it seems..) Why do we need 8 public universities that charge little to nothing for tuition? Why do we need so many public school districts?

Let's trim the state budget!

Anonymous said...

You've got to love how these liberals freak out about "cutting revenue" and "taking from the state's budget." Liberals really have no perception of who the money actually belongs to and who actually earned it. It's MY money and I need it now!

Anonymous said...

"This isn't hyperbole" is almost always hyperbole. Sam's immaturity bleeds through almost every issue the paper takes on as a cause. Phrases like "Please. Stop. The. Madness." are mostly reserved for twitter rants and facebook screeds at 2am.

Anonymous said...

@10:43 That's a great proposition, but if you've followed the legislature, you'd know that they issued a bond bill to borrow $250 million (yes borrow, you have to pay that back) which will largely go to projects at those 8 public universities (and a mind-blowing $45 million to Ingalls Shipyard).

So you've got a legislature that cut several hundred million in taxes and borrowed 250 million. That's not cutting government waste, that's passing a pandering tax cut to tell party line constituents that they're fiscal conservatives while actually increasing spending. I'm all for cutting the government, but lift the restrictions that keep State employees in protected jobs. Pass REAL cuts that force change. A 5% cut here or there just forces State agencies to cut services, but that's not enough to force real change.

This "taxpayer" cut is smoke and mirrors to give massive tax breaks to corporations. You and me will see $10 more a month in tax cuts while corporations will save millions.

Anonymous said...

Tate carried the water on this all the way. The Speaker was not committed to this at all. Gunn is a RINO. Thanks Tate for your strong leadership on this.

Anonymous said...

10;36 - your comment is on target, but misses the mark.

It is not "cut the waste", although there certainly is some waste to be cut.

It should be - cut out what is not a priority need of government. Quit spending on many programs (not just the waste, the entire program) - government - local, state and federal - have decided that if there is a perceived problem then the government should spend money to look like they are doing something about it.

Every agency and every program has a constitutency. But not every program needs to continue. The CL has the theory that cutting some revenue is good as long as you replace it with other revenue. I support those in the legislature that feel that reducing the revenue is the only way to downsize government to an appropriate level.

My complaint is that they spread the shortfall across all agencies and all programs. Make some hard decisions and cut some 50%; cut others all-together; leave the important ones in place with cutting there what is appropriate for the waste.

Keep on trucking - Reeves, Gunn, etc. Let the CL cry, along with those legislators that feel that satisfying all constitutents with all their wants is your role in life.

Kingfish said...



I'm pretty sure you favor a minimum wage hike to $15 an hour. SO you want to raise his costs and gripe about lowering his tax bill yet fail to see the squeeze you want to put on the small business owner.

Get Sam Help said...





Please.Get.Sam.Help



Anonymous said...

The front page of the C-L has become a barren journalistic wasteland.

Anonymous said...


The State of Mississippi should take some of that $250 Million and help prop up Jackson. The State has one million plus square footage in the Capitol Complex that uses water, sewer and most of all the streets are used by the State employees. COME ON STATE OF MISSISSIPPI CONTRIBUTE SOMETHING !!!!! Phil needs to bring in the National Guard to patrol the streets.

Anonymous said...

I agree the National Guard needs to patrol the streets of Jackson. There needs to be some law in Jackson.

Anonymous said...

A lot of Mississippi's problems would be solved if we just cut the number of counties here in half.

Anonymous said...

Prop up Jackson. Haha. Maybe the surrounding counties should start billing that schitthole for every crime committed by one of its thugs. Or for front end damage from its streets. Take the government buildings out of Jackson and you'll have that place looking like Mogadishu in no time. Those buildings and tax dollars from people spending money while they work there are most of what is keeping it going as it is. I do think the government buildings need to pay for a few things such as utilities, but the prop it up/handout mentality of its constituents is why Jackson is like it is. Stokesville.

Anonymous said...


I do not see it as a handout---the State does not pay property taxes and uses the streets just as we do. I believe very few State employees spend money in downtown Jackson---they go to Flowood or Madison, mostly in State vehicles, to east lunch and shop. WOW---get you head out of your ass and look around.

Anonymous said...

Like the Jackson Free Press, the CL has become a clearinghouse for OPINION. They stopped true reporting years ago and instead fill their pages with stories about"ME", "US", and "I". They have lost all ability to objectively report facts and instead report with emotion.

I have noticed over the past year that reporters have become cheerleader for ANYTHING Jackson, regardless of fact. While the editor will rant about his values and ethics, he refuses to keep others in the public eye accountable. It comes off as less than genuine and very self-serving.

Anonymous said...

How can anyone with a drop of sense support this cut? Look at what has happened to Louisiana and Kansas. Blatantly stupid.

Anonymous said...

@1:52, 1:13 here. I live and work in Rankin County and spent about $450 downtown today. I look around and my head is out of my ass. Wonder if any taxes are paid on state owned property in other counties/cities? Jackson is what it is because it was chosen as the state capital, over Rodney, MS if you're into knowledge and stuff like that. Look at Rodney, that's what Jackson could have been. Now, take the state buildings out of the city of Jackson, will the city make more or less than it does now? Honest question. Buildings stay, people leave. Maybe we should have forced the private business's that left due to it being inhospitable to stay and continue to pay taxes. Point is, the state should pay for some stuff such as utilities. They shouldn't pay property taxes unless they do across the board. Jackson is "special", but it'd not special, if you pick up what I'm putting down.

Kingfish said...

Sam lost me when he called the airport lawyer contracts "lucrative" while the newspaper bleats about six dollar parking at the Fairgrounds.

Anonymous said...


I live in Jackson and I know better than you how things work around here. My office was downtown on Capitol Street for well over 30 years and I have watched what has happened. The State deserves some of the blame for not doing their fair share---they are no different than me or anybody else that lives in Jackson. I know Jackson is a shithole, as you put it, but it's my shithole. I'm sure you are one of those who moved out rather than trying to help. It's people like Buster Bailey that stripped the office market in downtown Jackson clean, it's law firms like Butler Snow that abandoned the city after making a name for itself on the back of this city---I could go on and on so don't tell me a damn thing about what you think until you move in the city limits of Jackson. I DON'T CARE WHAT YOU THING, GOT IT !!!!!

Victor Fleitas said...

Mississippi follows the GOP economic disasters in Kansas and Louisiana, with eyes wide open, in 3 . . . 2 . . . 1 . . . .

Anonymous said...

So in your minds, Louisiana's collapse didn't happen? And Kansas isn't an economic basket case?

I ask in all sincerity, because as a conservative, I'm confused.

It seems to me the conservative approach would be to figure out where specifically the waste is first, then cut that specific waste, then decide whether we can make do with less revenue. That's what I would do with my household budget. Going in the opposite order --cut revenue, then pray to God you find a bunch of waste-- sounds more like gambling than fiscal policy.

And now that I think about it, it seems downright un-conservative to give ourselves a "pay raise" rather than funding infrastructure and education when we're already beggaring our neighbors by being the biggest net consumers of federal tax money. I mean, if I had given my neighbor $1000 to pay his utilities, I wouldn't expect to see him leaving on vacation ...

But maybe I'm just one of those old-fashioned conservatives who believe in math and paying your own way. I'm sure you smart cookies have thought this through way more carefully than I have.

Right?

Anonymous said...

So, your site applauds tax cuts as a conservative move when the state is already $100 million in the hole? And you've cut mental health services (while OK'ing biz/shopping center giveaways), all while you're worried about mentally ill people committing crimes? Congrats for becoming so doctrinaire re the goodness of tax cuts in any context that you've become incoherent in re to what you actually stand for, on the whole.

Anonymous said...

Jumping on the bandwagon of 10:59, 11:16, 11:19, and 2:04. What happened to front page NEWS? Why does Gannett, the Publisher and Editorial Board allow his immature, opinionated, dramatic, "gotcha" tirades on the front page of the "state newspaper". He wants recognition and a promotion so badly. Unprofessional and embarrassing.

Anonymous said...

It would be a very good idea to move all govt. offices out of Jackson. Just look at the city. If there is ever any people from other states visiting, unlikely with the bible thumpers passing laws, they must really be impressed with our capital.

Anonymous said...


2:54 from 2:33, It's still our Capital City. Why don't you do something to help! I bet you don't live in Jackson!

Anonymous said...

Hall's conniption KF about the Legislator RVs at the Fairgrounds was funnier than all get out. Dude just doesn't realize how small he renders his own reporting.

Anonymous said...

So, your site applauds tax cuts as a conservative move when the state is already $100 million in the hole?

Another reading comprehension challenged JJ reader.

Anonymous said...

How? Until the last few comments, pretty much everyone on here painted the cuts as positive, and the editorial was painted as "hysterical." What's not to be highly upset about? The cuts, in their context, are wildly irresponsible.

Anonymous said...

@3:46 PM. Wherever you went to school, you need to get a refund.

Anonymous said...

So, let me get this straight. All these 'conservatives' think that making tax cuts is idiotic - have I got that straight? So - would you also applaud tax increases? If so, I can send you the address of the DOR and they will be glad to take your contribution.

Tax cuts - without an appropriate cut in spending - is good conservatism. And, by my reading of the legislature, they are making those spending cuts.

The fact that some agencies aren't going to get their 'annual increase' this year, that they are going to have to learn how to do with less is a good thing. Granted, not all need to be cut the same amount. But for all that are crying about - lets see, where should we start - highways, infrastructure, mental health, ...... - they can all stand a tightening of the belt. Mental health, as bad as the situation is, doesn't have a budget problem. They are one of the fattest of all agencies, and has been flying under the radar because 'nobody can be against mental health spending'. Most other agencies can also stand some cuts if they would be willing to make the hard choices and realize they can't fund everything.

BUT, there isn't an agency director that exists that will not spend whatever they have. There is no incentive to tighten an agency belt unless the cuts are made.

Here's the challenge. All the folks crying crock tears about these 'irresponsible cuts', bring for the specific agency and the cuts that they are taking. What problems is that going to create? What's the net effect to the state and its citizens?

And to those folks that say these particular cuts are good ones (franchise tax, double taxation on self employed, etc.) but should be replaced with other "revenue enhancements", what things should be increased with taxes? You want to increase the sales taxes across the state by one or two percent to pay for the infrastructure? How about your income taxes on the higher brackets?

These tax cuts are a good beginning. The appropriation cuts, while some bureaucrats and government supporters call draconian, are a good move. Unless, of course, you are one of the pie-in-the-sky folks that want everything (that affects you personally, of course - cut all the other programs because its a waste) and don't mind as long as the taxes are on the other folks, just don't raise mine.

Anonymous said...

I can't believe some of ya'll would ever question Tate Reeves about tax cuts. Thank you LG Reeves for my extra $150 a year!!!!!

Anonymous said...

Please cut the taxes! But keepa you hands off of my campaign contributions! I'm saving for a new RV and a new pair of cowboy boots. Sincerely yours,
Cousin Eddie

Anonymous said...

Tax cut or fund needs?

The issue is not about money per se.

The issue is about the role of government. I imagine the tax cutters don't think there should be any government....education, health, art, etc. The ONLY thing state government should be doing is providing roads and bridges.

Then there is the crowd who thinks that the role of government is larger. Government needs to provide police and fire protection, health care, infrastructure, education, regulatory control and basic needs.

Big difference in the varying degrees of government involvement.

Right now the folks who grew up watching uncontrolled waste and abuse are at the helm and they figure if the government doesnt have any money...it cannot waste it.

Until people are physically suffering in the streets there won't be a change in ideas. So get used to less money from taxpayers and less funds for government in general....cause they are here for a while.

Anonymous said...

Arbitrarily cutting all agencies without regard for their role or need as a governmental service is insane. All this does is allow politicians to avoid having to make actual and difficult decisions regarding each one. Damn, Id hate to see someone have to make tough choices!

I've been a conservative my whole life and still am. But come on....someone has to call BS! When you're the poorest state in the nation, you don't have the luxury of just saying "we're going to cut them until they're efficient" without making additional statutory or regulatory changes. Think about it: You take a large cut but can't lay anyone off. You take a large cut but can't limit your services.

I mean - they don't operate in silos....they're all connected through overall operations....budget, salaries, services provided, etc

Am I taking crazy pills???

Anonymous said...

Tate for gov'nor to replace Phil.

Tate has just shown he is the smartest politician in the room.

Anonymous said...

"I believe very few State employees spend money in downtown Jackson---they go to Flowood or Madison, mostly in State vehicles, to east lunch and shop. WOW---get you head out of your ass and look around."

An opinion with absolutely nothing to back it up is, well, without value. But, it's OK to have an opinion, even a wrong one. Back up your suggestions.

Anonymous said...

They've gotta be dropping shroom caps at the C-L. Full third of the front page today features a picture of a goat wearing a saddle.

Hall's goat rodeo is inside the building at 201 South Congress.

Anonymous said...

Tate has been the smartest politician in the room since Haley left the room.

Anonymous said...


WOW 5:17 AM, you must have still been asleep when you wrote that one !!!!!! In addition, I bet you don't live or work in Jackson.

Anonymous said...

People should read this article if they can stand to read something that goes against their preconceived notions. It offers a glimpse into Mississippi's future courtesy of Kansas.

Topeka; April 19, 2016

http://hosted.ap.org/dynamic/stories/U/US_REPUBLICAN_REVOLT_KANSAS_KSOL-?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2016-04-19-06-58-09

Excerpts:
After he became Kansas governor in 2011, Sam Brownback slashed personal income taxes on the promise that the deep cuts would trigger a furious wave of hiring and expansion by businesses. But the "shot of adrenaline" hasn't worked as envisioned, and the state budget has been in crisis ever since.

An economist for the conservative Tax Foundation told legislators last month that farmers and business owners appeared to pocket the extra money from the state's recent tax cuts rather than use it for expansion - "tax avoidance, not job creation."

Anonymous said...

10:53, You seem to forget, it is their money in the first place. They can use it any way they want or save it if they want. The govt. is already taking a big bite out of our paycheck. Now they want to tell us what to do with the little they let us keep.

Anonymous said...

She has NO IDEA the wrath about to shower down ALL OVER her.

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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

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In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

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If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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