Tax Relief

Hosemann expects the Mississippi Senate to current a tax relief invoice at this session, not a “tax swap” invoice Mississippi Politics and Information

The comments of Lt. Governors are more likely to agree with Governor Reeves than with Speaker Gunn.

Last year the question arose whether or not Mississippi will join the trend of state tax cuts and cuts. However, it is unclear whether Governor Tate Reeves, spokesman Philip Gunn and Lt. Governor Delbert Hosemann can compromise to abolish state income tax and improve Magnolia State’s competitive advantage in attracting new businesses and residents.

On Tuesday, Lt. Governor Hosemann during a press conference saying he is awaiting the Mississippi Senate will allow a tax relief law to be heard at this meeting, adding that its members were not persuaded to swap taxes – a direct reference to Speaker Gunn’s proposal, which the House of Representatives passed in 2021 but was not accepted in the Senate.

Governor Reeves has also spoken out in favor of not supporting a tax swap, which means removing income tax while increasing taxes and fees.

Lt. Gov. @DelbertHosemann says he anticipates the #msleg Senate will pass a tax relief law, adding that they are not convinced of a tax swap. This would be more in line with Governor @tatereeves’ position than spokesperson @PhilipGunnMS.

– Yall Politics (@MSyallpolitics) January 4, 2022

Hosemann’s remarks are consistent with what Governor Reeves has been saying for months. Reeves has made it one of his top priorities since he took office in 2020 to abolish state income tax.

During the Mississippi legislature in 2021, Speaker Gunn offered his plan to abolish Mississippi income tax. Gunn’s bill consisted of a ten-year elimination of income tax for individuals, a cut in food tax from 7% to 4%, and a 2.5% increase in state sales tax, along with other tax or fee increases in certain industries.

“We talked a lot about income tax. I think we can’t do better, financially, to help the people of Mississippi than give them more of their hard-earned money. “ said the spokesman. “The plan we are proposing actually does this and is a net tax cut.”

Gunn said that while he supports the house’s plan, he is not married to it.

“If there is a better idea, we appreciate it,” said Gunn. “Unfortunately, at this point in time, nobody else had come up with an idea.”

Spokesperson @ PhilipGunnMS talks must abolish Mississippi state income tax in this #msleg session. He supports the house’s plan but says he’s not married to it.

– Yall Politics (@MSyallpolitics) January 4, 2022

However, Governor Reeves has proposed a way to get rid of income tax. He did so in mid-November when his office published the governor’s budget recommendations.

Reeves suggested allocating $ 1 billion in excess revenue to the elimination of state income tax. He said that this will completely eliminate the 4% margin in fiscal 2023 and a significant portion of the 5% mark starting in calendar year 2023.

“In order to effectively abolish individual income tax in order to protect the fiscal and financial health of the state, we have to introduce budget ceilings,” demanded Governor Reeves in the EWC.

He proposed that the general state fund budget should only be increased by no more than 1.5% per fiscal year. Additionally, Reeves said 50% of excess proceeds should be used towards the elimination of Mississippi individual income tax, with the goal of eliminating it entirely in 5 years.

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