In an OpEd in the SunHerald, Grover Norquist, president of Americans for Tax Reform, applauded Gov. Tate Reeves and House Speaker Philip Gunn for their commitment to making Mississippi a no income tax state.
“Gov. Tate Reeves and House Speaker Philip Gunn would like to responsibly phase out the state income tax over the next several years,” wrote Norquist. “If enacted, this reform would allow taxpayers across the Magnolia State to keep more of their hard-earned money and make Mississippi a much more attractive place to live, invest, do business, and raise a family.”
Mississippi’s income tax is not competitive. Three of the nine states that do not tax wage income tax – Florida, Tennessee, and Texas – are located very close to the Magnolia State. And, as people and jobs continue to move to states that do not tax income, more states, including Mississippi’s neighbor Arkansas, are seriously looking to eliminate their income taxes.
“Unless Mississippi acts quickly, it is likely to look even less attractive in the coming years,” explained Norquist. “Gov. Reeves and Speaker Gunn understand this.”
Gov. Reeve’s 2022 Budget Recommendation proposes phasing out the 4 percent bracket within five years and then using revenue triggers – a responsible way that states have provided tax relief without getting ahead of their skis – to eliminate the 5 percent bracket. Thanks to Republican legislation enacted back in 2016, the 3 percent bracket is already in the process of being phased out.
“Gov. Reeves, Speaker Gunn, and Lt. Gov. Delbert Hosemann have an opportunity to deliver a huge win for all residents of Mississippi by making it the next state to commit to phasing out the job-killing state income tax,” said Norquist. “This would make Mississippi much more attractive to investment, bringing new jobs and opportunities to the state. It would allow small business, which file their taxes under the individual code, to have more resources available for jobs and higher wages. And most importantly, it would allow individuals and families to keep more of their hard-earned paychecks.”
To read the full OpEd, click here.