Wednesday, February 28, 2018

Sid Salter: The Good Ole Boys Syndicate

STARKVILLE – How 2017 federal and 2016 state tax cuts impact Mississippians and the abilities of state and local governments to provide services based on the revenues available from future tax collections under those cuts are questions not yet fully answered.

But to make matters even more interesting, the long term impact of those federal and state tax cuts may well be significantly impacted by the outcome of a 2018 U.S. Supreme Court review of a 26-year-old ruling that the National Conference of State Legislatures predicts could have an over $26 billion impact nationally on state and local tax revenues.


How does that translate into Mississippi sales or use tax revenues at a time when traditional sales tax collections have shifted from reliable annual growth to a near flat-lining of revenues? In Fiscal Years 2016 and 2017, sales tax collections accounted for 38 percent of the state’s General Fund receipts as the State Department of Revenue collected $2.062 billion in sales taxes in FY 2016 and $2.055 billion in 2017. Twenty years ago, that percentage was 41 percent.

In 2016, Mississippi lawmakers adopted and Gov. Phil Bryant signed the “Taxpayer Pay Raise Act” – the largest single tax cut in Mississippi history. By the time the measure is fully enacted in Fiscal Year 2028, the state will be foregoing a projected $415 million per year less in tax revenues.
The ten-year tax cut is predicated on three primary strategies: Elimination of the state’s corporate franchise tax; elimination of the three percent individual income and corporate income tax brackets; and creation of an exemption of a portion of federal self-employment tax on the state tax filings of the state’s self-employed.

Supporters of the measure argued that the state tax cut would ultimately create a more business-friendly environment in the state and therefore attract new jobs and allows existing state businesses to expand. Opponents argued that cutting tax revenues would exacerbate ongoing budget cuts to education, public health, and other essential services.

State Economist Darrin Webb publicly panned the idea that over the course of the phased plan, new economic activity in the state will fill the revenue hole left by the cuts. But the proof of the wisdom or folly of the plan won’t truly be told until the phase-in of the cuts are complete.

Into that uncertainty came the 2017 federal “Tax Cut and Jobs Act” – the largest federal tax revision in decades – with the average American family projected to save $2,059 on their next tax return. There is also a 20 percent income tax deduction for most businesses and the act eliminates the alternative minimum tax on corporations.

But critics argue that tax cuts for low to middle income individuals are temporary, while tax cuts for businesses and corporations are permanent. The elimination of the Affordable Care Act is also seen as a longtime negative for paying for public health care in poor states like Mississippi. 

Because state government in Mississippi helps fund local governments through sharing a portion of taxes collected, it’s important to remember that Mississippi counties heavily rely on property taxes since they don’t get a share of state sales taxes (18.5 percent of collections made within the city) as Mississippi municipalities do.

So while watching the impacts of 2016 state and 2017 federal tax cuts, Mississippi state and local governments are watching the U.S. Supreme Court for a 2018 ruling in the so-called Wayfair case. In that case, the court will review the 1992 Quill vs. North Dakota case, which held that states generally could not collect sales taxes from a seller that did not have a physical presence or “nexus” in that state.

On Jan. 12, the Supreme Court announced that it will hear a South Dakota case that could reverse the Quill decision and allow states to require all online sellers to collect sales taxes. South Dakota and 35 other states have asked the high court in South Dakota v. Wayfair to declare that the “nexus” or "physical presence" rule is outdated and punitive to bricks-and-mortar retailers at a time when Americans are increasingly doing their shopping online.

The outcome of that judicial review should be huge in Mississippi, a state in which about 38 cents of every state sales tax dollar collected is collected on sales.

10 comments:

Anonymous said...

The good peoples of Mississippi know better than any others that if you just stop taking all of massas money for gov'ment bull mess like education, he'd have more to spend and everybody would be better off. Why the scraps off his table would be ten times fatter if Gov. Phil and Tatter could cut the way they want to. It's called the "Rankin County trickle down" and it works! I've got a nice double-wide to prove it!

Anonymous said...

These commentary types are always concerned about govermnment "revenue." Do they even realize that this is money coming out of the pockets of working Mississippians? The government is not entitled to any more of our money. Mr. Salter would do well to remember that most people in this state care more about the money they get from their paycheck than they do "state revenue" or "services."

Anonymous said...

Salter clearly is a big government Republican and a mouthpiece of the establishment MSGOP. He and Crawford are cut from the same cloth.

Anonymous said...

Poor Sid, he should have known better than to try and warn them. These boys always shoot the messenger.

Anonymous said...

You jokers that keep crying about the government being too big, love chewing off the fat for free. This nation does not operate off of air and water?

The roads do not build themselves? This sh*t is not free?

Mississippians, like the people in this thread, would rather wait for the roof to collapse, instead of climbing up there once a year to make sure everything is intact.

The damn state's infrastructure is so damn depleted, that company's do not want to come here. The ones that have come here and capitalized on tax rebates to open shop, usually close up shop and file bankruptcy, costing the taxpayers more money.

Sid Salter and Bill Crawford aren't the damn problems, its the idiots the majority of citizens in this state keep electing office.

They take their walking orders from the Heritage Foundation, Americans for Prosperity, pass legislation for the shell company's those two PAC's have set up.

The supermajority has a better Ponzi scheme going than Bernie Madoff

Keep believing the Salter and Crawford are the fools, that's what they want you to do.

Anonymous said...

When is Sid going to write about Andy “all night long” Cannizaro?

He's Actually A Liberal Democrat said...

Sid avoids the bubbling cauldron that is host to Cannizaro. The same cauldron that holds Keenum and his giant screwup in paying the abortion doctor to come to campus.

Wait, there's more that Salter wishes would not be discussed. No state flag on campus. Black alumni weekend (a giant exclusive, one-race house party).

If the posters over on the other page think McDaniel is an egomaniac....they've never met Salter.

Anonymous said...

Oh.

I see where Sid "Captain Obvious" Salter has returned.

Anonymous said...

Salter plateaued when he tried his hand at hosting a radio talk show. Molasses flowing uphill.

Anonymous said...

Great article , Sid and as usual, well researched and well thought out. And, as usual, it's clear you still put the best interests of Mississippi ahead of your own.

Alas, even when it's all about the math, too many have now been convinced that all government is bad and has no legitimate function other that defense and law enforcement.

They ascribe to " every man for himself" and imagine that a community should be able to build schools and roads themselves...the barn raising theory of the past. We built one room school houses and barns without government.

And, they believe the promise of future money is the same as having it in hand.

They believe helping business means business will save us and give sufficient amounts of their new profits to us in raises and new jobs so that we won't need government but will be able to fend for ourselves.

In economic and governmental history, this is an old story. It doesn't end well. In a democracy or republic, a vote becomes a show of support or loyalty and if lucky, the first Caesar or King or President is a benevolent dictator, but eventually a successor will not be.

History keeps repeating because so few see that it's really all about human behavior and that selfishness and greed are what we should be fighting as those are deadly human weaknesses of character that always lead to disaster.




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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.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

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.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

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!!!

This is definitely a Beaver production.

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