What a win! This week, Mississippi made history as the first state in the U.S.—aside from oil-rich Alaska—to pass legislation eliminating the income tax. While nine other states have never had an income tax, Mississippi is blazing a trail by actively dismantling it.
“So what?”, you might say. “Why does this matter if full elimination is still a decade away?” The answer is simple: it’s already transforming our state for the better. Eliminating the income tax makes Mississippi a magnet for growth. Look at Texas, Florida, and Tennessee—three southern states without income taxes that are booming. Even Arkansas recently lowered its rate to stay competitive with us! Since we began reducing our rate to a flat 4% in 2022, the Mississippi Development Agency reports an extraordinary $25 billion in inward investment. Businesses are flocking here, confident that the payroll tax burden is fading away. This victory isn’t just about economics—it’s a triumph for conservative reform.
Around the Governor’s desk on Thursday evening, we saw bold leadership from Speaker Jason White, Rep. Trey Lamar, and a few dedicated others who fought for this change. We should not forget the role of former Speaker, Philip Gunn, either. Mississippi is, as you know, full of southern charm. One consequence of this is that each time a significant reform passes in the state legislature, there is a tendency to pretend that the change came about because of some kind of kumbaya consensus. This win came from grit, not just goodwill. Days ago, some were still resisting real elimination. Minds moved because of determined advocacy. This success proves that the roadblocks to reform can be overcome with bold, principled leadership. There might be a consensus about income tax elimination now, but it is a new consensus, won by bold conservative leaders fighting for it. We salute those that put principle on the line and fought for change! Douglas Carswell is the President and CEO of the Mississippi Center for Public Policy. The Mississippi Center for Public Policy sponsored this post.
28 comments:
They didn't eliminate income tax, they are phasing it out over a decade and they simply replaced it with another tax
They are not getting rid of anything. Just moving it to another column and renaming it. The politicians seem to think we are dumb enough to believe it. But to tell the truth many of us are. That is why we have a lock on last place.
Oh yeah, Carswell. I love the "bold conservative leaders" who took it upon themselves to grant themselves an income tax break and then dump additional taxes on every Mississippian -- even those who are not currently paying income taxes. That is soooo bold I can hardly wait to see us experience negative economic growth just like Kansas did when they eliminated their income tax at the urging of some other "bold conservative leaders." What a crock!
Our governor is sharp as a marble.
What a joke. How do politicians get sucked into this idiocy? It’s all a shell game, the winners like always are the wealthy. The losers are everyone else. Is this really the state of conservative ideology? These conservative think tanks have done more harm to our country over the last 40 years than any adversarial country could have imagined.
“Think of how stupid the average person is, and realize half of them are stupider than that.” George Carlin
Good old Sam 'The Sham' Brownback and his toadies wrecked Kansas.
Now Mississippi says: 'We want some of that!'
If you are concerned about the tax burden shifting to other tax sources then you need to be as stridently opposed to any reduction in the sales tax charged for groceries. Because any reduction in grocery sales tax collections will produce pressure on municipalities to increase their taxing entity specific need for higher ad valorem property taxes. Otherwise, you're just a bullshit artist and hypocrite ... but we already knew that.
It's amazing how many people are mad about this happening. Do you think there were many discussions before this was passed? You don't do things like this without looking at the big picture, long term. You can always volunteer to pay income tax anyway regardless of the cut if it makes you feel better.
Given the staggered phase out, the average Mississippian won't notice any real change in take-home income- because there is not one.
Too late fellas, you lost.
If this was all planned out then why all the lulz from the legislature and Governor about the so called "typos" in their really great tax bill?
You have to be almost as dumb as they are to think this was an accident:
"Some of y'all were focused on a typo in the bill, and I'd use the political analogy that he who has not had a typo cast the first stone," WannaBe Governor Hosemann.
11:50 am Yeah, I think it was "discussed", I just don't think there are enough members who understand economics and even a few who do, but care more about re-election in a state where economics isn't a required course much of anywhere.
Fifteen years ago if someone suggested that Donald Trump would be president and Dr. Oz would be over Medicare and Medicaid, I would have laughed my ass off and bet everything I own against the possibility. I knew that US society was messed up, but I had no idea it could spiral into insanity. Maybe Hulk Hogan can take over as defense secretary when Trump kicks Hegseth to the curve some day.
@ "Think of how stupid the average person is, and realize half of them are stupider than that."
George Carlin
That would be median, not average.
Increasing gas tax and grocery tax and reducing income tax is a great idea. It puts the unproductive population in a position where they have to contribute more. Just taxing income only hurts the productive members of society. While they’re at it, they should increase the lotto tax.
I would guess that state revenues will never be at a level that actually allows the income tax to be eliminated. It will be reduced, but it remains to be seen if it ever is fully eliminated.
Let us pretend to be "oil rich Alaska" and the rest of the country will be in awe of great Mississippi. Actually we once again assume our place as the butt of jokes-real life Beverly Hillbillies.
I'll sum up all comments except 1:31: "I won the lottery? Gee, thanks. I guess I have to pay taxes on that. No thank you. I know what you're doing to me and I see it. Keep it."
I maintain the average Mississippian wasn't clamoring for the income tax to disappear. This was some grand idea started by Reeves and passed along to make us more competitive with TN, FL, TX. News flash: those states have large, thriving metropolitan areas with an educated population, good schools, and more amenities than the Jackson Metro, Gulf Coast, or Tupelo combined. That's why they are growing, not because of a lack of income tax.
The sloppy nature of the implementation is becoming the calling card for modern Republican officials.
I'm Very perturbed at our House following thru with this fiasco.Speaker White has an enormous EGO as does Rep. Trey Lamar. Heard the Speaker say a day or 2 ago that he's said early in the Session he wouldn't follow the norm-have Conference Weekend etc. So these 2 people decide they have the World's solutions to Taxing the State of Ms. This is the World's shell game in the Ms Legislature. Cut Income Taxes though minutely, give an opportunity for Municipalities to raise Sales Taxes, increase the Fuel Tax all while trying to tell Mississippians you've done something progressive. I guess Trey Lamar needs some more Country Club updates with Roads & Drainage? I suppose the Speaker has an Ego the size of wanting to run for his next Office. We'll see how this works out before long--
My old man always said “ if you’re dealing with a man of average intelligence” . You can always meet him half way” to find a solution . He’s been dead 40 years, boi if he were here today! I can’t image what he could say.
1:31 posted: "Increasing gas tax and grocery tax and reducing income tax is a great idea. It puts the unproductive population in a position where they have to contribute more."
1) Increasing grocery tax was never considered and did not result.
2) The 'Unproductive Population' never paid for groceries in the first place.
Heard the Speaker say a day or 2 ago that he's said early in the Session he wouldn't follow the norm-have Conference Weekend etc.
You obviously haven't been listening nor paying attention. But that is no surprise.
White is saying conference weekend is not the norm and should not be the norm. House members on both sides of the aisle have been complaining about conference weekend, the wheeling and dealing, and its lack of transparency for years now. This session White told Democrat Delbert well in advance that he was listening to House members and would not support the approach any longer. If you've got a beef, take it up with Lt. Gov Donkeycrat.
Very true. I was shopping in Kroger one day when a couple came into the store. The woman told the man to go and get the most expensive ribs Kroger had. I was sort of curious and followed him. He told them he wanted the highest price ribs they sold. They wrapped them up without him even looking at them. I followed him to the checkout where he pulled out his EBT card to pay for them.
12:01, you are correct. Elections are more important than doing the right thing for the people that got you in the office. I blame some of it on the general public, most people are too lazy to fully comprehend economics and rely on mainstream media for all or most of their information. If they actually got their heads out of the sand, they would be shocked at what they find. People are actually angry about taxes being eliminated or going down. Remember, according to Democrats, tax cuts ONLY benefit billionaires not regular working Americans. People need to research independently but that requires effort……
Tell me again how hundreds of thousands of retirees will benefit from eliminating income tax while raising gas tax and taxes are increased at the county and municipal level.
While government officials, with their fingers crossed behind their backs, try to convince people that this is a great state to retire in.
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