Personal Taxes

Mississippi Leads the Nation in Private Earnings Will increase Sustained by Federal COVID Help Controls Mississippi Politics and Information

Mississippi personal income rose over 89% in Q1 2021, largely due to pandemic relief controls.

Across the country, the state’s personal income rose 59.7 percent annually in the first quarter of 2021, after falling 3.9 percent in the fourth quarter of 2020, according to estimates by the Bureau of Economic Analysis released Tuesday.

The percent change in personal income ranged from 89.3 percent in Mississippi to 31.1 percent in the District of Columbia.

Mississippi saw the largest increase.

The reason for the increases is primarily due to the federal government’s COVID relief checks passed by Congress earlier this year that topped $ 2 trillion. Individuals received $ 600 under the Trump administration and an additional $ 1,400 when the Biden administration began.

According to BEA, transfer revenue for the country rose $ 2.3 trillion in the first quarter of 2021, accounting for almost all of the growth in personal income. The increase in referral revenue reflected new government pandemic relief payments provided through the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act and the American Rescue Plan Act.

“New data from the Bureau of Economic Analysis shows that personal incomes rose in all 50 states and in DC in the first quarter – largely thanks to the easing of the US rescue plan,” the White House said in a press release. ‚ÄúThis is in sharp contrast to the fourth quarter of 2020, when personal incomes fell in 27 states and DC. At an annualized rate, the state’s personal income rose 59.7% in the first quarter of 2021 after falling 3.9% in the fourth quarter of 2020. “

However, this rapid increase is not sustainable, as no future relief checks by the federal government are currently planned that reflect the amount of the income injection in the first quarter of 2021. These families have child allowances starting in July, entitled to $ 300 for children under 6 and $ 250 for children 6-17 years of age. These payments run through the rest of 2021.

Additionally, most states, including Mississippi, have ended the federal government-offered additional pandemic unemployment. Heads of state hope this cut in unemployment benefits will motivate workers to return to work, citing complaints from companies about not finding workers willing to hire.

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