Tax reform is on the agenda. This is excellent news for our state!
To prosper, Mississippi must create a tax environment that is friendly to both businesses and families. We have moved in the right direction in the past three years. According to the Tax Foundation, Mississippi now ranks as the 20th most business-friendly state in terms of tax. This improvement in our state’s tax competitiveness is a consequence of the Reeves-Gunn tax reforms. Under Governor Tate Reeves and Speaker Philip Gunn, Mississippi passed legislation to cut the state income tax to a flat 4 percent and allowed businesses to fully expense capital spending. But the tax burden in Mississippi is still too high. Our state is surrounded by states, such as Tennessee, Alabama and Texas, that have a lower tax burden than we do. Even Louisiana manages to tax less than us. Fortunately, we have some state leaders that recognize this. Speaker Jason White is hosting a Tax Policy Summit in September to look at what might be done. Lieutenant Governor Delbert Hosemann has announced a study group in the Senate to look at fiscal policy, with the ultimate goal, he says, to “lower the tax burden and ensure taxpayer dollars stay in taxpayer pockets”. Mississippi’s House of Representatives also has a select committee on tax reform, which had its first hearing this week. To be blunt, the House select committee hearing the other day was a big disappointment, especially seeing as we are a supposedly conservative state. Much of what I heard sounded like special pleading from vested interests to increase taxes, not cut them. I wondered at times if Bernie Sanders was in the room. The hearing on tax reform began with a witness making the point that Mississippi needed to spend more money to build more road infrastructure. The conversation then became about the best way to do so; raise sales tax, tax gas more or charge motorists per mileage. Not raising tax revenues was described as a “failure to invest”. Spending more tax dollars would pay for itself, it was asserted. Any serious review of tax policy in our state should not start with special pleading. It should start with the basic facts about the shape of Mississippi’s public finances. The number one fact about Mississippi public finances is that we have a substantial budget surplus. That is to say politicians in our state have more of our tax dollars than they currently know what to do with.How could we change the tax system to allow people to keep more of their own money before politicians figure out ways of squandering the surplus? That is where the select committee ought to have started.
25 comments:
If it draws business, go for it.
Hinds County is strapping more tax on the backs of the citizens. Get out as soon as possible. It will only get worse.
The income tax is not what keeps businesses from coming to Mississippi.
Virtually every adjoining state taxes less than Mississippi. There is one thing I know for sure, their legislative assemblies are smarter than Mississippi’s. Mississippi has the most arrogant, drunken, and uneducated in the USA probably.
In the final analysis as always in Mississippi it's WHO not WHAT that will decide. WHO benefits and WHO gets the shaft. If the right people benefit we will get tax reform to beat the band. The other people have no real influence and will get the shaft. Just figure out who's who . Bernie Sanders in Mississippi? He's got to be kidding.
11:23 - It comes to less than 50 additional bucks a year. Give it a rest.
It's not the taxes. It's the lack of education, lack of educated work force, lack of infrastructure, crime, redneck politics and racism that drive our deplorable national and international reputation.
You Eastoverians and Fondrenites and Belhavians get ready to slap leather as Hinds County is raising ad valorem taxes inthe county with the highest millage in MS.
@11:23
for a house valued at $75,000 ;
Since Jackson Public Schools has shed 14,000 students, why aren't property taxes going down?
I agree with mcppp. Our state infrastructure is in excellent shape. We certainly don't need any income taxes. And our population is so health and wealthy. The state should be giving us money instead.
Eliminate the income tax, even if it means a small raise in the sales tax. Income tax free states are doing pretty well.
The State could be prosperous if the Legislators would spend Tax Money where it needs to be spent. For instance, they promised when the lottery was approved, the profits would be spent on Highway and Roadway repair and maintenance, and Teachers pay raises ( education ) only. Two main things that attract Businesses and great, new educated citizens to our state. Well, what do the " Redneck " Legislators do ? Just like all revenues taken in, they transfer whatever they want into the so called, " General Fund," that is basically a " Redneck Slush Fund. " They lied to the teachers and the rest of the public just so they could get them on board. When Mississippi continues to be controlled by a bunch of Rednecks from North Mississippi, building roads where no one lives just so that their brother-in-laws can have a paycheck, and spend State and Federal funds meant for the poorest of the poor to enrich themselves and their friends, this State will continue to loose population and will always be a broke Redneck Welfare State. On the other hand, I have traveled all over the State, Nation, and World, numerous times, and I can promise you this. When you meet a good Mississippian, man or woman, there is not a more God-Fearing, friendly, caring, polite, giving, loving, intelligent, feed you if your hungry, clothe you if your cold, kinder people in the entire world. And even though I no longer live in Mississippi, I still call the place home, because of the incredible citizens there. Not because of the corrupt politicians there who continue to destroy the State and hold back the potential of what the State could actually be. And the Great things that I mentioned about the people of Mississippi, please exclude all Mississippi Poilticians from being any of that, please.
Mississippi has a crappy labor force pool is the reason business doesn't come here. Not "low taxes".
Not business, man or beast wants to come to Mississippi. You could cut all taxes to Zero.
I heard Mr. Speaker on the news this morning talking about the surplus. Highway 35 from highway 51 to highway 12 in his district is cracking and sinking in multiple sections in both directions. A bridge was closed on highway 51 just north of north of his hometown 6 months ago causing lengthy detours to many residents. Locals have told me they haven’t started repairs yet. I saw he was “home” for 9/11 ceremony so surely he is aware of these issues. Sure would be nice for MDOT to get some of that surplus to repair this. These are not county roads. They are heavily traveled state highways.
4:28
The Redneck legislators gave teachers the largest pay raise in the State as well as above the S.E. average. As far as the lottery the first $80 million goes to roads and bridges the rest (20+ million) goes an education fund. You may want to pay attention the wherever you live now as you certainly are not to Mississippi!
-signed a Redneck Legislator
Dear Redneck Legislator:
If you’re so proud of your accomplishments, why are you posting anonymously?
4:25 Is it really states that are doing well can afford to eliminate their income tax? No it's not the same thing.
We have a net exodus of population and it has NOTHING to do with tax rates. This is a red herring.
I have a friend who recently moved to Mississippi from Texas. Her Texas property taxes were over $8,000 a year and about to increase by a third. Her bigger house near the Reservoir has less than $3,000 annual taxes. The money must come from somewhere. MCPP just wants to reduce what their wealthy donors-owners pay in income tax, the rest of us be damned on all other taxes.
Thank you 12:15 I also lived in Texas for 10+ years and noticed the same thing. Get it from the rich or get it from the poor. MCPP chooses to get it from the poor. Go Mississippi.
1:19 pm We don't mind. We already know the State Junior Colleges get to raise those rates at will with only the vote of their appointed alums. We aren't stupid and are well educated and financially successful enough to live in Eastover or Fondren or Belhaven. We don't like faux and aren't gullible. We don't care as much as some of you seem to what color our neighbors are as long as they are smart, well educated and keep up their property tastefully.
7:56
Most of the “poor” in MS do not pay income tax or property tax. The only tax they pay is sales tax. Everybody uses roads, schools, police, fire, etc. Everybody should pay some taxes.
Sounds like a lot of people on here should run for office. Instead of bashing the state, run for office and make it better.
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