In a new Forbes column, ATR’s Patrick Gleason highlights a pro-growth tax reform proposal unveiled in Mississippi yesterday by Lt. Gov. Tate Reeves (R). Read Gleason’s piece below to find out how Lt. Gov. Reeves’ proposal, if approved by legislators, would make Mississippi more economically competitive, would increase the job-creating capacity of in-state employers, and would allow Mississippi taxpayers to keep more of their hard earned income.
Forbes: Tax Reform Continues To Sweep Through The South
By: Patrick M. Gleason
Today, Mississippi Lt. Gov. Tate Reeves (R) introduced a plan, dubbed the Taxpayer Pay Raise Act, that would reform the state’s tax code in a manner that makes the state more competitive, fosters economic growth, and allow individuals, families, and employers across Mississippi to keep more of their hard-earned taxpayer dollars. The plan is projected to save taxpayers $400 million per year once fully phased in.
One of the most pro-growth aspects of Lt. Gov. Reeves’ proposal is its phase out of the state’s franchise tax, one of the most economical damaging taxes a state could have on its books. David Brunori, professor of public policy at George Washington University and Forbes contributor, explains why franchise taxes are so harmful and even worse than traditional corporate taxes:
“The Mississippi tax is essentially a tax on capital. That is ludicrous in a global economy. Companies in Mississippi pay $2.50 per $1,000 of capital or property, whichever is greater. There is no limit. The more capital employed, the higher the tax.”