Mississippi Gov. Tate Reeves (R) announced Tuesday his plans to further reduce the state's income tax until it is entirely eliminated over the next four years.
Reeves said in his executive budget recommendation for fiscal year 2024 that his proposal is "feasible, practical, and does not require cutting current state expenditures."
"Last session, I was proud to sign into law the largest tax cut since Mississippi became a state in 1817, returning over half a billion dollars to its rightful owners – taxpayers," Reeves said. "Thanks to last session's historic tax cut, Mississippi now has the 5th lowest marginal tax rate in the entire nation. While I am proud that Mississippi took a major step forward in the 2022 session by reducing the income tax and allowing Mississippians to keep more of their own hard-earned money, it is clear that there is more work to be done."
Reeves said he's "once again proposing that Mississippi eliminate its income tax by reducing it immediately to 4% on all taxable earned income and by an additional 1% each year over the next four years."
"To attract new residents and compete for new business, Mississippi must take further steps to remain competitive and to attract new investments to the state," Reeves said. "Furthermore, after months of prolonged inflation and the heightened cost of gas and groceries under the Biden Administration, it's become more important than ever to alleviate the pain felt by Mississippians. Elimination of the income tax is a prime opportunity to make life easier for Mississippians. After all, every dollar taken by the state is one less dollar that a family has to support their family. Mississippi can afford to eliminate its income tax. My proposal is feasible, practical, and does not require cutting current state expenditures. Last session, the fiscal and financial environment was right. Sadly, the political environment was not. This session, I hope that's not the case."
Mississippi legislators will begin their next legislative session on January 3. Alabama begins its legislative session in March.
Governor Kay Ivey and some Alabama legislators have repeatedly suggested offering a temporary tax rebate to Alabamians and argued against broad, permanent tax relief in recent months despite record surpluses. They cite potential upcoming downswings in the economy as a reason not to cut taxes permanently.
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