Tuesday, March 2, 2021

YP Blasts Tax Cut Fight

 This column is reprinted with the permission of Y'all Politics. 

If 2020 taught us anything in Mississippi it was that when Republicans come together and lead, big things can happen in the Magnolia State.

We saw that with the change in the state flag.

Both chambers of the Legislature, led by Lt. Governor Delbert Hosemann and Speaker Philip Gunn, determined it was time to act on the state flag.  Hosemann and Gunn came together, as did their chambers, to craft legislation that achieved a goal many Mississippians have long sought but failed to get across the finish line.  It took bipartisan action, unified from the private sector to the state Capitol, to make the historic change.

Republicans advocated for the change. Republicans drafted the legislation. Republicans led the debate in their chambers. Republican majorities passed the measure. Voters rallied support at the ballot box and in their communities. And a Republican Governor signed it into law.

But there has been something missing since voters chose to put Republicans fully in charge of state government in the 2019 elections, handing the GOP the keys to all eight statewide offices, supermajorities in both the state House and Senate, and the majorities in the two regional commissions.  Voters did not bargain for the functional unwillingness and/or inability for the three top leaders in the state Governor Tate Reeves, Lt. Gov, Hosemann and Speaker Gunn – to get along on a basic level.

It just does not seem to be a high hurdle for those three people to get in a room alone – without handlers, staffers or lieutenants – prior to the legislative session (and throughout the session), pick out the two or three top priorities that absolutely have to get done, and effectively orchestrate their passage.

Instead, bills or initiatives are lobbed haphazardly from one area of influence onto another, becoming a public race for everyone to demonstrate their conservative bona fides. Mississippians have now seen it on display, from the fight over the COVID relief funds to the hold out of funding for the Department of Marine Resources to the lawsuit filed by Speaker Gunn against Governor Reeves over his veto, and so on.

The House introduced income tax phase out plan passed this week is yet another example of why Republicans should talk with each other and not at each other.

Given the rollout by the House, if the Senate does not act on the measure as sent to them, House Republicans promoting the income tax bill will openly denigrate their commitment to eliminating the tax.  Republican Senators, on the other hand, will shoot back across the Capitol saying the House is sending them over 20 tax increases with no reduction in spending all for the political expediency of capturing the narrative that they are cutting taxes.  All of this while the Republican Governor watches and reminds his party members of their commitment to voters, likely pondering a veto if the bill reaches his desk with net tax hikes.

The “who is the most Republican” fight has already begun.  It could have been easily avoided – three months ago.

Thursday morning, Speaker Gunn appeared on SuperTalk’s Paul Gallo Show to discuss the bill.  He took a shot across the bow of the Senate and Governor Reeves.

“Everybody who reads that bill and understands that bill is for that bill,” Gunn said. “The only people who are against the bill…are those who have a political agenda or those who have a self-serving interest at hand.”

 Governor Reeves offered his thoughts earlier this week.

“I, personally, support tax cuts, not tax swaps or tax transfers or tax increases and so as we move through the process that’s what we’re going to be focused on is finding a way to get to a net tax cut for Mississippi taxpayers,” Reeves said.

Reeves cautioned his fellow Republicans who were considering these proposals, taking time to reiterate the tax philosophy that generally guides conservative policymakers.

“I certainly wouldn’t want to be a Republican that votes to significantly increase taxes for certain segments of the general public,” the Governor said.

State Senators Brice Wiggins and Chris McDaniel spoke with Y’all Politics this week and expressed similar concerns about the House plan.  Both questioned the size of the bill (some 300 pages) given the late hour in the 2021 session and the tax swaps that are throughout the measure instead of a standalone income tax phase out.

Wiggins even noted that the House had “hijacked” the Senate’s teacher pay raise by putting that provision in this income tax bill rather than taking it up on its own merits as sent over.

Again, it does not have to be this way.

The top three Republicans leaders and lawmakers in general are not going to agree on everything, but on “the big stuff” they owe it to voters and activists that put them in these enviable political positions to get that big stuff done.  Then, they can fight and let the chips fall where they may on the little stuff.

But a fight is now inevitable.

Democrats and special interests groups are going to pile on and the liberal media that dislikes all three leaders are going to have a field day.  Passage of what should be impactful legislation becomes difficult, bloody and arguably, unlikely.

No one gets off blameless here.

These elected leaders have four legislative sessions that voters grant them.  They have nearly burned through two.  This should be a teachable moment for the state’s top leaders so they can come back in 2022 (the last one before an election year) and get it right.

That is what Mississippians expect and deserve.

Kingfish note: Keep an eye on the House and see if it holds up all Senate bills unless the Senate passes the tax cut bill.  The Street Committee says this may very well happen.


35 comments:

Anonymous said...

Gunn needs to get Delbert on board. Tate doesn't matter.

Anonymous said...

Chris McDaniel ? Why are we asking him anything? Wiggins is the Coastal version of M Baker!

Anonymous said...

At the risk of sounding totally naïve, I didn't realize until now that Phillip Gunn is an idiot who is in waaaay over his head. He's an embarrassment to the Republican party and more importantly to the state of Mississippi. What a dolt !

John in Brandon said...

It never ceases to amaze me that so-called intelligent people ( I use that loosely) can push pie in the sky ideas down the peoples throats. Poorest income state, in many cases poorest schools, roads and bridges crumbling around us. Yet they want to push the most regressive form of taxation on us. The same people in the House would not vote a bill out of committee to let the people vote on a gas tax hike but want to shove this pile of feces into law. What do they think a 20+% sales tax increase is going to do to many on their constituents?

They are delusional if they think no state income tax is going to be the magic bullet that will lead to prosperity. I was personally involved with 2 companies that looked at Mississippi to locate factories here. Both went to other states, not because there was a state income tax, but poorer quality of life, poor schools, and bad roads. Phil Bryant kept pushing one of them to Tunica county, the owner said thanks but no thanks. Where is our work force going to come from?

I just pray that the Senate has enough sense to kill this before it's too late.

Anonymous said...

He's an embarrassment to the Republican party and more importantly to the state of Mississippi.

You and your garbage back on display again. Name your Top 3 Mississippi Republicans currently active in the party today.

Anonymous said...

So far the first three posts are all from people who can't seem to make a substantive argument. Is there anyone out there who wants to sound intelligent when you post?

Anonymous said...

The tax cut bill is not a good bill. It looks all well and good on the front end, but mark my word, its a foot in the door to line item tax increases for certain markets over the years. It smells like a rat.

Anonymous said...

A tax switch. That's ultimately what this is all about although the language of "tax cuts" is the jive they sell the gullible public. The correct inquiry remains "WHO". As in WHO is most affected by the increase in sales tax as a part of their survival budget. It's always about WHO.

Anonymous said...

9:14
Correct

Anonymous said...

It is a tax swap.
The tax payer is a worker ant

Anonymous said...

When one takes time to read through the bill, it is clear to see that the House (or whoever actually wrote the bill and handed it to the House) intends to tax farmers, loggers, truckers, the folks that work on the aforementioned industries' equipment, the HVAC services, etc. to pay for the reduction in the income tax. I'm amazed at the specificity with which they are naming certain tax increases: materials for the expansion of a dairy farm?? Not many will complain about the tax increases on tobacco or alcohol, but they are in there. Not to mention the increase in the sales tax. But the House doesn't want you to think about all this. They just want you to focus on the reduction in the income tax and grocery taxes. It is a bait and switch. Plain and simple.

Kingfish said...

What's funny is the proponents are saying it will keep out the lobbyists.

Bullshit. Raising all these industry-specific taxes means the lobbyists will be working overtime for years to come to get them to adjust those sales tax rates.

Anonymous said...

The Status Quo Warriors have made their daily appearance.

Anonymous said...

As long as my property taxes aren’t screwed with then have at it, this is obviously becoming a retirement state.

Anonymous said...

At the risk of not making a substantive argument, and being just a humble voter older than 18 years by decades, I really get nervous when politicians tell me they want to help me out with my taxes. More often than not it’s akin to being told there’s great benefits from drinking rattlesnake milk. It’s usually the voters doing most if not all of the milking though. One only has to look at the debacle given to us by the legislature concerning proposition 65 to know that any of these clowns aren’t mature enough to run a snowball stand. And yet Mississippians sit by and fail to kick the morons to the curb. It’s a case of You Get What You Pay For and in this case we’re getting it!

Anonymous said...

So, y'all are saying all existing special carve outs and treatments in the existing tax code are fine and dandy? I get it, tax you but don't tax me, mine or my friends.

Anonymous said...

It will certainly be a hardship for retirees. Many of us don't pay income tax at all because our income is so low. Now this? Everything will cost us more and, on a fixed income, this is not good news.

Anonymous said...

Time for retirees to find somewhere else to live, if they are able.

Bill Dees said...

Because retirement income is not currently subject to the income tax, this bill will be a big tax increase for retired people. And I really do wish that the House would refuse to take up any Senate bills until the Senate passes the stupid Gunn tax bill.Having the legislature pass no bills would be a boon to the citizenry.

Anonymous said...

This is far more forward thinking than you hayseeds understand. The workers will soon be irrelevant. Automation and AI are going to put everyone from burger flippers to paralegals and even surgeons out of work. The only tax that will be collected will be on the machine made food delivered by drones, and disposable consumer entertainment technology that people purchase with their UBI.

Anonymous said...

Also funny that such an enormously complex financial overhaul law was rolled out and voted on without so much as a fiscal analysis. Smell's like political boo-boo in here.

Anonymous said...

Gunn needs to get Delbert on board. Tate doesn't matter.

Correct.

Anonymous said...

I agree with YP. So, on the count of 3 let's all get in a big circle, hold hands and sing Kumbaya. Then we all give each other a big hug.

Anonymous said...

Texas and TN do not have State Tax

Anonymous said...

Texas and TN are overall much better run states.

Anonymous said...

@11:56AM
These taxes are also forward thinking in that they will tax the machines that will be producing everything instead of humans.

New surgery robot and nursing android? That gets taxed.
McDonalds Franchises buying new efficient burgerbot and frybot? Taxed.
Replacing your aging delivery drone fleet? You bet that will be taxed!

They will also tax Netflix, Hulu, Prime, Disney+ as well as Oculus, SteamVR, and all entertainment delivery services.

Someone besides Speaker Gunn wrote this.

Anonymous said...

How mentally ill do you have to be to claim that the Republican Party led the way on changing the flag?

They were dragged into it kicking and screaming over the objections of nearly half their party, and the endless foot-dragging BS of their governor.

And now this barn full of hissing possums is fighting over exactly who gets credit for crashing our economy into the rocks like Kansas and Louisiana.

New Rule: Voters who supported a mono-party that has kept its state in 50th place for more than two consecutive election cycles are barred from voting in the next two cycles, to give the state a chance to recover.

Anonymous said...

Texas and TN are not shithole states.

Anonymous said...

@12:55

If you need to be told the differences in Mississippi vs Texas and Tennessee then you probably wouldn't understand the explanation if someone typed it out for you.

Anonymous said...

11:10, change for the sake of change isn't necessarily a good thing. I believe that the state income tax needs to be reduced, if not fully removed. However, if this is such an imperative matter, why wait until later in the session and not at least have worked with Delbert to get a joint package together?

11:14, my point wasn't that any special carveouts were sacred or should be off limits. My point was that if you double the taxes, which is what they are proposing, on farmers, truckers, loggers, and those that work with them, the Republican in the legislature may find it difficult to go home and look their constituents in the eyes and say, "See I helped you." They may find that those same constituents help them look for another job besides being in the legislature.

And when you read the actual bill rather than talking points or headlines, you see that this is a crazy bill that is too specific into certain aspects of the tax code to have just "appeared" within the last two weeks of the session. It was held to be dropped at the last minute where it couldn't be analyzed fully before being rammed through the House.

Republicans in MS complain about how things are being done in DC and then act no differently. The hypocrisy is stunning.

Anonymous said...

The only person (other than Gunn and the House Chamber) that I have heard speak in favor is Gerard on Superior Squawk who makes arguably $700k per year. Can you say special interest?

What new State Flag? said...

I just a couple of weeks ago renewed my Mississippi drivers license, online, for the big money and long term 9 years I think. To my surprise, once receiving it in my mail and looking it over, well how about that. There's the OLD State Flag right in the middle of the background, where just the right amount of wind had the stars and bars hugging the flagpole out of site and revealing only the stripes. Ha!

Anonymous said...

It’s not about being a Republican it’s about doing what’s best for the state of Mississippi citizens. Governor Tate if you are reading this keep pushing and is coming from a dark complexed Democrat. All that matter if you are doing your job to the best of your ability and I think you are. You can’t please everyone so just do your best.

Anonymous said...

Three people pushing this. Very influential. Do not want to pay income taxes. Wives mostly shop in Destin. Not much local consumption to tax. Have donated generously to legislators and are funding the talking heads. It's an easy way to generate 5% more income - pay less state income tax.

Anonymous said...

@ March 2, 2021 at 11:31 AM

"It will certainly be a hardship for retirees. Many of us don't pay income tax at all because our income is so low. Now this? Everything will cost us more and, on a fixed income, this is not good news.

Great point and it really is that simple.

The "majority" in the Mississippi legislature has been convinced by the Tax Foundation, that by removing income taxes, working Mississippians will have more money to spend on daily goods, clothes, groceries, cars, guns, ATVs, computers, cell phones.

So then they will just spread out the tax burden, so everyone is "contributing" to the pot.

It sounds good until you get to the cost of the goods.

The buying power for the middle class and working poor in Mississippi will dwindle under this plan.


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