Latest news with #BuildUpMississippiAct
Yahoo
28-03-2025
- Business
- Yahoo
Deep red state makes major announcement about income tax: 'We plant our flag'
FIRST ON FOX: Mississippi taxpayers will get significant relief with the incremental elimination of the state's income tax. Republican Gov. Tate Reeves is signing legislation into law Thursday evening that will lower that tax from 4.7% to nothing over the next few years, including getting it down to 3% by 2030, then eventually down to zero. House Bill 1, the "Build Up Mississippi Act," also slashes the grocery tax to 5% from 7%. Republican Governor Says Doge Is Restoring Optimism In Fiscal Responsibility "I am proud to sign into law a complete elimination of the individual income tax in the state of Mississippi," Reeves said in a statement. "Let me say that again: Mississippi will no longer tax the work, the earnings or the ambition of its people. The legislation I'm signing today puts us in a rare class of elite, competitive states. There are only a handful of states in the country that do not tax income. Today, Mississippi joins their ranks, and, in doing so, we plant our flag." Read On The Fox News App Proponents of the legislation believe it will help boost economic development in the state. Only nine states do not charge an individual income tax: Tennessee, Florida, South Dakota, New Hampshire, Florida, Nevada, Wyoming, Alaska and Washington. Ice Arrests 16 Illegal Migrants Caught Fleeing Out Back Of Mississippi Business During Raid "This is more than a policy victory. This is a transformation. And it's a transformation that I have believed in, fought for and worked toward for many years," the governor stated. "Generations from now, when our kids are raising families of their own in a stronger, more prosperous Mississippi, they will look back on this moment and say, 'This is when we took our shot.' To the people of Mississippi, you are the real winners today." Mississippi City Drops Libel Lawsuit Against Local Paper Forced To Remove Editorial Critical Of Officials The state legislature had disagreements on how to best approach tax policy, and a typo considered a happy accident by proponents paved the way for a faster schedule on how soon the cuts can be made, according to the Clarion Ledger. The outlet reported that some Democrats are opposed to the legislation, citing potential concerns about its effect on the public sector. The new policy comes as major tax changes are being proposed at the federal level. The Tax Cuts and Jobs Act of 2017 expires this year, and President Donald Trump has pledged to extend it. He is also hoping to make good on a promise to scrap the federal income tax on tipped wages and overtime article source: Deep red state makes major announcement about income tax: 'We plant our flag'
Fox News
27-03-2025
- Business
- Fox News
Deep red state makes major announcement about income tax: 'We plant our flag'
FIRST ON FOX: Mississippi taxpayers will get significant relief with the incremental elimination of the state's income tax. Republican Gov. Tate Reeves is signing legislation into law Thursday evening that will lower that tax from 4.7% to nothing over the next few years, including getting it down to 3% by 2030, then eventually down to zero. House Bill 1, the "Build Up Mississippi Act," also slashes the grocery tax to 5% from 7%. "I am proud to sign into law a complete elimination of the individual income tax in the state of Mississippi," Reeves said in a statement. "Let me say that again: Mississippi will no longer tax the work, the earnings or the ambition of its people. The legislation I'm signing today puts us in a rare class of elite, competitive states. There are only a handful of states in the country that do not tax income. Today, Mississippi joins their ranks, and, in doing so, we plant our flag." Proponents of the legislation believe it will help boost economic development in the state. Only nine states do not charge an individual income tax: Tennessee, Florida, South Dakota, New Hampshire, Florida, Nevada, Wyoming, Alaska and Washington. "This is more than a policy victory. This is a transformation. And it's a transformation that I have believed in, fought for and worked toward for many years," the governor stated. "Generations from now, when our kids are raising families of their own in a stronger, more prosperous Mississippi, they will look back on this moment and say, 'This is when we took our shot.' To the people of Mississippi, you are the real winners today." The state legislature had disagreements on how to best approach tax policy, and a typo considered a happy accident by proponents paved the way for a faster schedule on how soon the cuts can be made, according to The Clarion Ledger. The outlet reported that some Democrats are opposed to the legislation, citing potential concerns about its effect on the public sector. The new policy comes as major tax changes are being proposed at the federal level. The Tax Cuts and Jobs Act of 2017 expires this year, and President Donald Trump has pledged to extend it. He is also hoping to make good on a promise to scrap the federal income tax on tipped wages and overtime pay.
Yahoo
21-03-2025
- Business
- Yahoo
Mississippi House passes state income tax bill
MEMPHIS, Tenn. — Mississippi House lawmakers have passed a bill that would phase out the state's income tax while adjusting other taxes. House Bill 1, also known as the 'Build Up Mississippi Act', would 'phase out the state income tax on the taxable income of individuals.' The bill, authored by Representative Trey Lamar, was transferred to the Senate in January and amended earlier this week. The House voted 92 to 27 to agree with the Senate's amendments on Thursday. Mississippi Governor Tate Reeves celebrated the move. 'Congratulations to the Mississippi legislature on passing historic tax reform and ELIMINATING THE INCOME TAX!' Reeves posted to Facebook. 'What a great day for Mississippi taxpayers.' While Reeves says he can't wait to receive the bill, the bill's ultimate fate is uncertain as a motion to reconsider was also entered on Thursday. Reeves acknowledged that there are lawmakers who 'desire future tweaks to this law.' Reeves says that changes can be considered in future legislation. In addition to phasing out the income tax, House Bill 1 would reduce the sales tax rate on groceries and 'revise the sales tax exemption' on gas. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
12-02-2025
- Business
- Yahoo
MS Senate tax cut plan unveiled. See how much it cuts
There will be a tax cut debate between the House and Senate this year after all. After several days of proverbial hammering from House members, Lt. Gov. Delbert Hosemann unveiled specifics on the Senate's tax cut plan to match what the House passed early in the session. The plan would seek to cut $538 million in tax revenues over a four-year period in both cuts to the personal income tax and the grocery tax, while leaving local funding levels from sales tax diversions in place for municipalities. The plan would also raise the gas tax by 3 cents over three years and would raise it to a total of 9 cents on every gallon. Hosemann said during a press conference at the Mississippi State Capitol Building on Wednesday he expects $212 million to be added from that tax to go toward road and bridge infrastructure. State of the State address: Gov. Reeves urges tax cuts for Mississippi Hosemann said the tax cut proposal would take four years to fully implement, and it would leave the state's income tax at 2.99% and the grocery sales tax at 5%. House tax plan: MS House passes income tax cut after nearly 2-hour debate. Will Senate pass it next? "One thing that's really important to all of us in the Senate was the fact that we cut taxes immediately and consistently, that there's no bump here for a while and a decrease later on," Hoseman said. "This needs to be a sustainable, conservative approach to taxes." In the end, it would be a $326 million cut to state funding. The plan starkly contrasts key provisions of the House plan, dubbed the Build Up Mississippi Act. Which would: Feature a net $1.1 billion cut to state revenues. Totally eliminate the state personal income tax over 10 years Cut the grocery tax on groceries in half but allow cities to levy a 1.5% local sales tax. Remove sales tax diversions from the state to municipalities. Implement a 5% fuel tax to then fund infrastructure projects. The $80 million that was going to MDOT per year from gambling revenue will now be headed toward the Public Employee Retirement Systems of Mississippi to address a $25 billion deficit in future retirement benefits. Establishes a "budget stabilization fund" that will act as a secondary rainy-day fund. In contrast, Hosemann said the Senate tax plan does not contain provisions to address the state's public retirement system, but it would be a sticking point in another piece of Senate legislation. Hosemann also said he thought the House proposal was too ambitious of a plan and that any plan to cut taxes beyond a four-year window is unwise. "When you get beyond four years, you really get into Neverland about what's going to happen," Hosemann said. "Nobody really knows what's going to happen. You'll see we are very reluctant to get into something further than what we've done today." School choice debate: School choice in MS House lives by in-house rule, not Democratic principle. See details House Speaker Jason White, R-West, in response to the unveiling of the Senate plan that the House will stand firm in its resolve to totally eliminate the state's personal income tax. He also said he is glad the Senate has at least come to the table with a proposal. "I'm glad they have a play," White said. "I'm glad now hopefully we could start moving down the road of comparing their ideas, the house ideas, and see where the common ground is, where the differences are." The differences in the chambers' approach to tax cuts tees the policy up for a lengthy debate between House and Senate lawmakers. If those conversations are fruitful, one side will likely bend one way or another. For now, the bill that will feature the Senate's plan will have to be filed and pass through both a Senate committee and the floor before the House can consider it. Grant McLaughlin covers the Legislature and state government for the Clarion Ledger. He can be reached at gmclaughlin@ or 972-571-2335. This article originally appeared on Mississippi Clarion Ledger: MS Senate unveils tax cut plan
