JACKSON, Miss. — Two days of discussions are underway that could help determine if Mississippi will eliminate its state income tax, as a legislative panel weighs the impact of such a move.
The panel will take a look at several options, including one proposal that would eliminate the state income tax over time, but increase the 7 cent sales tax.
Mississippi’s Governor Tate Reeves agrees that the income tax should be eliminated and spoke out this week saying it will best position his state for long term success.
“I hope that once the hearings are over the legislature will realize eliminating Mississippi income tax is needed, and reducing the tax burden on Mississippians across the board is the best way to insure our state’s economic prosperity,” Reeves said during a Tuesday press conference.
But the governor says he doesn’t want lawmakers to do a swap, eliminating the income tax in exchange for increases in sales tax or agricultural tax. He says it’s not necessary to rob Peter to pay Paul.
But he does think it’s time to take action as Mississippi competes with states like Texas, Tennessee and Florida for investment capital and human capital.
The panel will also hear from different groups about the impact of tax changes on the poor, the retired and on businesses.
We asked folks in North Mississippi their thoughts on getting rid of the income tax.
“I am looking forward to not having it taken out my check because it’s so many things, especially with the coronavirus going around and stuff. It’s like a lot of folks in debt and stuff,” said Larry Moore.
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Right now the income tax future is still up for debate. Lawmakers continue their discussions Thursday.