Mississippi seems to be doing rather well. Our economy is growing, and according to data from the U.S. Bureau of Economic Analysis, Mississippi was one of the fastest growing states in the last quarter of 2024. Personal incomes are rising faster than inflation.
Our state is heading in the right direction because we’ve gotten some key policies right. Taxes, notably the state income tax, have been lowered, with eventual income tax elimination in sight. Rules on occupational licensing have been reformed, making our labor market more flexible. We have (by and large) kept public spending under control, meaning we have a budget surplus. We don’t yet have meaningful school choice. However, every child in the public school system does have a personalized budget, making it harder for the education bureaucracy to squander resources and easier for the dollars to follow the child. Every one of these wins was achieved because a handful of people were prepared to put their neck on the line and fight for it. Each time they were opposed by vested interests and, frankly, by the go-along-to-get-along apathy of some who ought to have known better. We’re only on the road to income tax elimination because principled conservatives were bold. Previous Speaker Philip Gunn overcame opposition to lower income tax to a flat 4 percent. Current Speaker Jason White outmaneuvered the forces of inertia facing him to secure legislation that will mean eventual elimination. Governor Tate Reeves made the case for it consistently. At every stage, the Governor and two Speakers were attacked for their stance, notably in various leftist-sponsored media outlets. Sometimes by those that now claim credit for the tax cut. Mississippi’s legislature has just passed one of the most conservative budgets in years only because the House leadership refused to do business-as-usual. They insisted on a proper budget setting process – and if you remember, were repeatedly lambasted for it.
Efforts to ensure every child has a personalized education budget were often fiercely resisted by folk now claiming it was their idea all along. That’s politics, you might say but that's how change happens. A new consensus comes about not because everyone gets together for kumbaya, but because good ideas defeat the bad. Mississippi is on the upswing, but there are so many more reforms we need to ensure we’re no longer 50 th out of 50. We are now surrounded by states that have school choice. Red tape in our state is restricting growth. Despite an impressive recent improvement, far too many working age adults in our state aren’t working. It’s not naïve optimism that will deliver school choice or red tape reduction, but robust, unflinching advocacy. It’s time to turn up the volume. Douglas Carswell is the President and CEO of the Mississippi Center for Public Policy. The Mississippi Center for Public Policy sponsored this post.
18 comments:
Thanks Doug.
Lowering Income taxes while raising gas taxes is pretty funny considering half my neighbors make under 60k and drive gas guzzling trucks. I think they'll be seeing an increase in the total taxes paid
Still 50th, always 50th, regardless of political propaganda to the contrary.
While all the negativity? Seems to me we should (at the very least) be encouraged...gotta start somewhere. Lighten up Francis!
I'm all for eliminating income tax if you have faith in alternative revenue streams. I don't. I current surplus that keeps getting touted is because of short term dollar influx and spending freezes from COVID. The legislature has no long-term plan to make up for future budget restrictions faced with lower income tax revenue.
The states that successfully don't have income tax like Florida, Texas and TN have so much more diversified economies and significant tourism industries (not to mention higher property taxes) that make up the difference in not having income tax. I feel like I'm taking crazy pills that people don't seem to talk about this more.
Red tape is always restrictive
You hit the nail on the head that I’ve been screaming into the void for the last year! I just get called a liberal for even daring to bring it up
Another false start is not a start, Pedro.
Tired of hearing about tax cuts without hearing about spending cuts. Compare the general fund of 2024 to the general fund of 2014 and 2004. We are moving the shells around, not actually cutting anything. Spending is at an all time high in Mississippi.
Doug wants to applaud the House but doesn’t mention how they want to blow $400 million of the reserves on pork projects when revenues are decreasing.
1:56 is correct, as income tax diminishes, other taxes, especially property taxes go up. The idea of lowering taxes is supposed to attract more business and jobs and prosperity. In Texas, people have to become more prosperous to afford a house and property taxes. In Jackson, a mayor was just elected who is a tax and spend bureaucrat, believes he can improve Jackson on the back of grants and programs, even as Federal government spending is being cut, as it should be. Will this new mayor be effective at growing Jackson's economy? Not until he increases safety, quality of infrastructure and surrenders the airport, water and sewer to a regional authority.
Some people in this state want MS to stay 50th.
Is MS going bankrupt?
... considering half my neighbors make under 60k ...
You're admitting that?
... they want to blow $400 million of the reserves on pork projects ...
The Reunion Parkway interchange @ I55 isn't pork. Delbert's going to regret his actions this session on that project.
Horhn is raising property taxes regardless.
But Mississippi is first .... at being 50th.
Mississippi is at the bottom of the totem pole. It sure in the hell suck! We are continuing going backwards instead of forward. NO PROGRESS!
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