The House and the Senate have passed competing tax cut proposals:
- The Senate passed SB 2839 that would eliminate the corporate franchise tax over 10 years and provide breaks for small businesses and eliminate the 3% bracket on personal income taxes.
- The House passed HB 1629 bill eliminating the personal income tax altogether within 15 years conditioned upon a 3% or better “growth trigger.”
Lt. Gov. Tate Reeves has offered a compromise: implement the Senate plan over 10 years and then eliminate the state’s 4 percent income tax bracket over the next 5 years for individuals and businesses with no growth triggers.
The Senate Finance Committee has passed the compromise but the Speaker of the House Philip Gunn has not yet considered it.
In a bold proposal, Mississippi Speaker of the House Philip Gunn introduced a $1.38 billion plan to eliminate personal income tax in Mississippi with House Bill 1629. Speaker Gun stated, “If we are going to do a tax cut, we want it to be real, substantial and make significant impact on the lives of those who are paying the tax.”
The press release provided the following key points of the bill that the House Ways and Means Committee passed February 24th:
- 15 Year – $1,380,360,533 individual income tax elimination
- 3% bracket eliminated by 2019
- 4% bracket eliminated by 2022
- 5% bracket eliminated by 2030
- 3% revenue growth required
- Mississippi family that makes $30,000 a year – $1,350 Raise
- Mississippi family that makes $50,000 a year – $2,350 Raise
- Mississippi family that makes $70,000 a year – $3,350 Raise
The Senate has approved Senate Bill 2839, a $382 million tax-cut proposal that phases out the business franchise tax and the personal income tax on the first $5,000 of taxable income.
For more information:
The Sun Herald posted AP Newsbreak: Gunn to seek phaseout of personal income tax by Jeff Amy:
JACKSON, MISS. — In a game of escalating tax-cut proposals, House Speaker Philip Gunn, R-Clinton, will propose the biggest so far: a $1.7 billion phaseout of Mississippi’s state personal income tax over more than a decade, a top legislator said late Monday.
House Ways and Means Committee Chairman Jeff Smith, R-Columbus, confirmed Monday that he plans to bring forward the proposal in his committee Tuesday. Continue reading