The tax swap bill is dead, dead, and back from the dead. Never let it be said Speaker Gunn and his merry band of Gumps are quitters. The Senate killed their massive tax swap bill this week. However, Gunn & the Gumps struck back, attaching a new version of their tax swap to a $121 million higher education bond bill.
The House passed a bill that would have eliminated the state income tax, cut grocery taxes to 4.5%, and raised a multitude of sales taxes. The bill was introduced and passed out of committee and the House in less than 48 hours. State Senate Finance Committee Chairman Josh Harkins killed the bill.
What has been going on behind the scenes is a cold war of sorts. The House leadership is holding up Senate bills - or screwing with them as it did the Medical Marijuana bill.
State Senator Harkins sponsored SB #2971, a $121 million bond bill that funds projects at Mississippi's universities and community colleges. History & text of bill. It passed the Senate and moved to the House where leadership couldn't pass up the chance for some poetic justice. The House added an updated version of its tax swap bill (See Section 11 of the second amendment) to the bill. The amendment eliminates income taxes on incomes of $75,000 for married couples and $37,000 for individuals. An tax filer can add another $1,500 exemption per dependent. The amendment doesn't raise taxes on forestry products, farmers, or manufacturers.
So there is a Mexican stand-off of sorts at the Capitol right now. The House is not going to let its tax swaps go and will kill Senate bills until it gets its way. Will the Senate retaliate?
Meanwhile, there is the matter of this language in the Covid-19 relief bill Congress passed recently:
‘(2) FURTHER RESTRICTION ON USE OF FUNDS.—‘‘(A) IN GENERAL.—A State or territory shall not use the funds provided under this section or transferred pursuant to section 603(c)(4) to either directly or indirectly offset a reduction in the net tax revenue of such State or territory resulting from a change in law, regulation, or administrative interpretation during the covered period that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction, a credit, or otherwise) or delays the imposition of any tax or tax increase.
‘‘(2) REPORTING.—Any State, territory, or Tribal government receiving a payment under this section shall provide to the Secretary periodic reports providing a detailed accounting of— ‘‘(A) the uses of funds by such State, territory, or Tribal government, including, in the case of a State or a territory, all modifications to the State’s or territory’s tax revenue sources during the covered period; and ‘‘(B) such other information as the Secretary may require for the administration of this section.
‘‘(e) RECOUPMENT.—Any State, territory, or Tribal government that has failed to comply with subsection (c) shall be required to repay to the Secretary an amount equal to the amount of funds used in violation of such subsection, provided that, in the case of a violation of subsection (c)(2)(A), the amount the State or territory shall be required to repay shall be lesser of— ‘‘(1) the amount of the applicable reduction to net tax revenue attributable to such violation; and ‘‘(2) the amount of funds received by such State or territory pursuant to a payment made under this section or a transfer made under section 603(c)(4).
Stay tuned.
13 comments:
Miss’sippi gonna Miss’sippi
And if this isn't an indication of how corrupt Mississippi's "educational" system - only God knows. The IHL is like a default "put it in there" entity that will allow for anything to be passed off for the "benefit" of education when it has zero to do with education. One doesn't have to even wonder why the $94 million stolen happened so easily.
Oh, and by the way - in this instance:
Trey Lamar - Ways/Means Chair
Ann Lamar (Mommy) - IHL Board Member
= A Conflict of Interest anyone? Smells like fish.
I reckon it’s a good thing that the dems in dc are sending money to cities and counties (and school districts) because these MFers are going to f*ck up the entire session with their pissing contest. Way to take a supermajority and f*ck it all up, guys.
Gunn's insistence on this tax swap touched my "cynical nerve". Is there something in this for Gunn personally?
But it's all "for the children."
I remember some years back Gunn decided that he didn’t like something that was added to a bill. Showing off his intelligence (cough) he decided that the new language inserted was not germane to the original bill.
When asked what the House attorneys’ thoughts were he stated that he did not need their assistance with the determination and that he decided that on his own.
Well Mr. Speeeeaaker, how is the new tax bill language “germane” to a bill that is for issuing bonds for IHL?
I’ll wait for his response hear.
@12:19pm - I tried not to “do it for the kids,” but I accidentally anyway
"Don't tax you; don't tax me; tax that fellow behind the tree" - The late Senator Russell Long
This is a perfect example why every incumbent in the Mississippi legislature, both House and Senate need to be voted out of office. The absolute destain for the voters along with an arrogance that stinks to high heaven.
When Gunn proclaimed that this bill would put money in the pocket of every Mississippian he branded himself a liar and an incompetent law maker who has to lie to the public to get some very poor legislation passed. Even by Mississippi standards this pathetic.
This a pissing contest between Gunn and Dilbert !
Nothing more, nothing less.
I
So Gunn and Speaker-behind-the-scenes-Lamar caved to the pressure of the Farm Bureau, the timber industry, and the manufacturers but still didn't give a damn about the retired folks living in the state that don't pay income tax on their retirement income but will pay the increased sales taxes. Another part of the lie from Gunn that this bill "will put money in everybody's pocket" - but as long as he keeps AFP folks happty, what difference does a little fibbing every now and then make.
7:59 - Who are AFP folks? Excuse my ignorance.
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