Speaker of the Mississippi House of Representatives, Jason White, issued the following statement.
Today, the Mississippi House of Representatives took a transformative positive step by passing House Bill 1, the Build Up Mississippi Act, with bipartisan support. This crucial legislation paves the way for a brighter economic future for our state, delivering a comprehensive tax reform package designed to uplift Mississippians, support our infrastructure and PERS system, and empower local governments.
By phasing out the state income tax and significantly reducing sales tax on groceries, we alleviate the financial strain on Mississippians and create an environment ripe for robust economic growth. Under HB 1, every municipality will receive more funding under the local option, 1.5% sales tax, than the current diversion. With Build Up Mississippi’s proposed consumption-based model, Mississippi will maintain a lower sales tax and remain more competitive than our surrounding states. The bill also revises exemptions for motor fuel sales to include a retail fuel sales tax of 5%; this modest sales tax aims to enhance revenue for the Maintenance and Capacity Projects Fund at MDOT. HB 1 is not a “tax swap” but a strategic move to attract economic development opportunities, stimulate local governments to address critical infrastructure needs, and foster real tax relief, ultimately benefiting every resident in our great state and finally eliminating the personal income tax.
Moreover, $100 million of revenue from lottery proceeds will be redirected towards our commitment to a stable
retirement plan for our state employees which showcases our unwavering determination to build a stronger
Mississippi. The remaining lottery proceeds will be allocated for the Education Enhancement Fund and Multi-
Modal Transportation: our state’s ports, harbors, airports, rails, and transit system. By prioritizing essential
services and safeguarding the PERS system, we are investing in the long-term well-being of our communities and
reinforcing confidence in our state’s economic stability.
With the passage of HB 1 in the House, we have taken a monumental step towards enacting the largest tax cut
in Mississippi's history. This is a powerful message that we prioritize the quality of life for all our citizens while
laying the groundwork for a thriving economy that will uplift generations to come. As the #1 priority in the House,
we are thankful for the overwhelming support we have received from cities, county officials, statewide elected
officials, and the Mississippi business community. I urge the Senate to now take a close look at HB 1 and be open
to collaboration to bring sweeping tax reform to our great state. Together, we can Build Up Mississippi where
everyone can prosper.
18 comments:
Smoke and mirrors, or is this a shell game? There is no mention of the fact that retirees would be paying more taxes as this is in fact a "tax swap" scheme.
Okay, Delbert, the ball is in your court. The prospect of your becoming governor will, in large measure, depend on how you navigate this tax cut legislation. What will you do? It seems as though the political winds of fortune have aligned and you will likely have to compromise. There's no shame in supporting what seems to be a popular piece of legislation. Why not just acknowledge that the House has done a good job? Why not give them credit? Is the bone stuck in your throat because Tate supports it?
My unsolicited advice, D-Man: horse trade with Jason. Tax cut or school choice? Your pick, Jason.
"Significantly reduce sales tax on groceries" By how much ?
"HB 1 is not a "tax swap'"
That's the biggest pile of bovine excrement on the whole internet.
If the state was serious about being small government they would cut the number of counties in half. Half the administrations, half the school districts, half the sheriff offices, half the government buildings needed, and half the courts. The number of counties we have with our population numbers is mind numbingly stupid.
I'm a retiree. My taxes will go down.
@9:57 - I'm a retiree (and a conservative Republican for what that's worth) and my taxes will go up - significantly.
Yes, if you are a rich retiree, your taxes may go down. But this tax swap (just as was former Speaker Philip Gunn's) is a tax cut for the rich, and a tax increase for middle class and poor.
Raising the sales tax by 1.5% will give us one of the highest sales tax rates in the country. Refusing to raise the gas tax, because that was grossly unpopular, is made a sham by adding a sales tax to the price of gas --- and also to the 37 cents of excise taxes on gas, so now we are taxing the taxes.
Yes, I'm sure this is popular with many of the House member's financial supporters (just look at who all is lining up touting this swap) but in the end most Mississippians will be facing a tax increase with this plan, both this year AND ten years from now when the income tax is done away with.
Every day, Idiocracy is less a joke and more real life. I just can't wrap my head around our fool legislators... Fix the roads, make education cheaper, legalize weed, and tax the devil out of alcohol.
... and a conservative Republican for what that's worth ...
An argumentative fallacy. Not worth a hill of beans.
...in the end most Mississippians will be facing a tax increase with this plan ...
Proof? Link?
The only thing that is happening with HB1 is the deck being is being reshuffled
and the middle class will be squeezed just like they always have been.
Write that down!
Unless I missed it, they didn’t eliminate the current tax on gasoline, they added a 5%tax on the sale. If that’s the case then @$2.50 a gallon that’s an extra 12.5 cents per gallon. Please correct me if I’m wrong.
@1:28 - we all known this. That’s the whole republican playbook. Voters will get what they voted for, more taxes on everyone except the top 0.1%. Hopefully those tax breaks will trickle down to us normal folks in the form of extra gardening and chauffeur jobs.
Come on people. I know this is Mississippi but anyone should know moving taxes around does not mean taxes are going down.
1:28 here; I somewhat disagree with your opening sentence, but agree with the balance of your comment. Republicans have for a long time - up until the last decade anyway - been in favor of lower taxes; lower taxes for everybody. Used to be true at both the federal level and before and during the early years of Republican influence and later control in the state; but now it seems that (some) Republican officials are sticking to a nice populist theme of "lowering taxes" and promoting that as the only way to go while hiding that action with the raising of many other taxes. They don't want to call this a 'tax swap' because that doesn't sell - but it is what it is. If you pay income tax, in ten years it will no longer be an expense (assuming you are still paying income taxes then.) But starting this summer you will be paying 1.5% higher sales tax on everything - meaning in most cities and towns you will have a tax rate of 10.5% to 11.5% (the current 7%, plus the multiple local options that cover most of the state for tourism, recreation, whatever, plus the new 1.5% that is supposed to make up for the city's loss of its cut of the grocery tax reduction.) You will also be paying a new tax - a sales tax - on gasoline purchases, including the cost of a gallon of gas that is due to the current state and federal excise taxes of 37%.
Yes, if you are in the $75,000 a year plus income bracket, you will see a net cut eventually. But for the rest of the state, you are going to be paying more today ---- but your friends on Supertalk and in the lobbying business (and don't forget the poor little ol' roadbuilders) are going to be happy and better off.
It is good to have a flat sales tax. I lived where Counties and Municipalities controlled the sales tax. HB1 will bring sales taxes of 10, 12, maybe even 15%. I’ve seen it. This is a bad bill and will be an even worse law.
Call and email your State Senators to vote No. We can do better than this. Even keeping things as they are is better than living under this bill’s changes.
Mr Speaker has several Leaks in his explanation of this. I have to Wonder how many people he Employs & writes Pay Checks for each day? Sounds much like a 5% Sales Tax on top of an Excise Tax- time to cut the BS and use Real Numbers in Budgeting. Ms has missed Projected income pretty bad the last several Years. I have to wonder how Federal (proposed) changes figure into this magical solution?
Ms has missed Projected income pretty bad the last several Years.
Link?
Can't everbody be payin a flat Tax! That means poor People will be payin taxes! Are you mad??? Anyway after having read all that above how does any of this help the PERS problem?
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