Tuesday, March 15, 2022

Senate Finance Committee Passes Tax Cuts

 Lieutenant Governor Delbert Hosemann issued the following statement. 

A bill which would reduce the income tax, cut grocery taxes, and provide for a six-month gas tax suspension cleared the Mississippi Senate Finance Committee today.

Amended House Bill 531 includes no tax increases or growth triggers and would be fully implemented in eight years.  The proposal includes: 

  • An immediate reduction in the grocery tax from 7 percent to 5 percent, at a cost of about $118.4 million; 
  • A 2022 rebate of up to $1,000 for all citizens with tax liability, which totals about $130 million.
  • A reduction of the 5 percent tax bracket over the next four years to 4.6 percent, at a cost of $136 million;
  • The elimination of the 4 percent tax bracket over four years after the reduction of the 5 percent bracket is finally implemented, at a cost of $185 million; and
  • A six-month suspension of the 18.4-cent gas tax, which totals about $215 million.

 “Inflation is through the roof and Mississippians need help with household expenses now.  The grocery tax cut, gas tax suspension, and rebate in the Senate’s proposal all provide direct and immediate relief to our citizens. A reduction in the income tax makes us very competitive with and lower than other states without compromising the budget,” Lt. Governor Delbert Hosemann said. “We have needs in the state, but we also have a surplus. We need to return money to taxpayers this year.”

If implemented, the Senate’s plan would eliminate about $439.4 million in recurring revenue from the budget by 2030 and would be the largest tax cut in Mississippi history.  In 2016, the Legislature passed a bill phasing out the 3 percent tax bracket by 2022.  The same legislation phased out the franchise tax on businesses over a ten-year period ending in 2028.

Revenue for the last fiscal year (FY 2021) and current fiscal year (FY 2022) are above projections, but budget analysts have advised revenues are likely buoyed by the significant federal recovery funds flowing into the state.  This makes it difficult to discern how much revenue is one-time and how much is recurring.

Additionally, both the House and Senate have made recommendations for additional spending on necessities, including a $220 million-plus pay raise for teachers across the state. The Senate position accounts for these promises and the instability in the economy.

For more information about Lt. Governor Delbert Hosemann, visit www.ltgovhosemann.ms.gov.


17 comments:

Anonymous said...

Timid RINO Hosemann.

Anonymous said...

Sounds reasonable. Git R Done!

Anonymous said...

There is no need for the tax rebates or gas tax suspensions.

Anonymous said...

WOW, a 4.6% reduction in the price of a $4 gallon of gas. I'll save about $2.94 each week. Thanks Delbert. Now I can buy a gallon of milk if I throw in a few more cents. You Republicans are really knocking it out of the park.

Anonymous said...

State income tax elimination my ass.

Anonymous said...

I'm all for lowering taxes, although I have yet to understand how this is going to work. If taxes go down in one area do they not have to go up somewhere else? Or are we going to live off this budget surplus indefinitely?

Secondly, I keep hearing proponents say how successful neighboring states such as TN and TX are without a state income tax. Read my lips - We ain't TN or TX!!! MS has several albatross hanging around its neck. It always has; it always will. That's just the way it is. There are untold differences between MS and TN/TX, and a state income tax is probably way down the list on reasons why MS can't/won't ever be like those states.

Anonymous said...

Take out the $1000 pandering rebate and the gas tax reduction and it will be a good plan.

Much better than the previous Senate weak attempt to eliminate the income tax, or Philip Gunn's tax swap plan that raised the sales tax while never eliminating the income tax due to the triggers.

Good attempt at a compromise but because of the egos involved, probably will die a quick death.

Anonymous said...

The Speaker must have read my comment at 11:00. The House has now passed a true income tax bill that got rid of the swapping income tax for a sales tax increase.

The two houses are not yet together but have quit taking baby steps toward an agreement and are now moving with giant leaps toward returning the excess collections to the source.

Hopefully they will get there and actually accomplish something. The amazing part of this scenario is that the end result looks like it might be closest to the proposal made by the third leg of the stool, Governor Reeves' proposal.

Anonymous said...

@10:54
I'll try to help clarify your spot on message. Those other states mentioned as having no income tax have NO WHERE NEAR the demographic problem we have.

Anonymous said...

Wow, this will save me $139/year. Woopie doo.

Anonymous said...

Those other states mentioned as having no income tax have NO WHERE NEAR the demographic problem we have.

Interesting choice of words. Do tell, which part of our demographic is the 'problem'?

Anonymous said...

@3:54 Certainly you joke.

Anonymous said...

"Interesting choice of words. Do tell, which part of our demographic is the 'problem'?"

Lawd, you liberals are absolutely obsessed with race. Seriously, do you not think about anything other than race? Are you that stupid? Do you not know what the word demographics mean? It could be the percentage of the state's population that attained a college degree. Or, it could be the percentage of a state's population within a certain income level. Or, on and on....

The point is that you have no idea what the intent of the commenter who made the comment intended due to the vagueness of his or her comment, yet you immediately assume the comment had racial undertones.

Anonymous said...

4:47 - you know what his vague comments mean and so do it. It is about race and everyone knows it and who he hesitantly points the finger at. I would be more specific, but I fear I will be censored by the man who won't point the finger.

Anonymous said...

P.A.N.D.E.R.I.N.G. Lord that took forever…. Just like these stupid proposals.

Anonymous said...

Suspending the gas tax is moronic. In 6 months when they have to raise it back, the people will be pissed. You'd be better off sending every citizen $100 in the form of a rebate, but even that is unnecessary.

And if you truly want to bring people to this State, try investing that surplus into things that actually draw people here. Fix infrastructure. Economic Development.

Anonymous said...

Suspending the gas tax is moronic.

Amen. Pinnacle of gimmickry. Hosemann is desperate and has lost all perspective.


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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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