Governor Reeves proposes to eliminate state income tax
Mississippi Governor Tate Reeves says he’s releasing information about his state budget proposals for the year that begins July 1st.
He says his ideas include the possible elimination of the state income tax. Legislators often ignore budget proposals from any governor.
Reeves could be facing bigger challenges than usual because of uncertainty caused by the coronavirus pandemic.
The individual income tax is one of the largest sources of Mississippi tax collections. The state collected about $5.8 billion from all sources during the year that ended June 30th.
About $1.8 billion of that came from the individual income tax. “We need to take that bold move to capitalize on the growth of possibilities of the uncertainty of 2020. This would save almost 2,000 dollars for the person who has taxable income of 40,000 dollars a year. That 2,000 dollars could then be spent in our economy. This should be the starting point for any tax discussion in the future or any tax discussion in the legislature in the coming years. Let’s cut taxes, not raise them and let’s eliminate the income tax, which is one, huge speed bump to long term economic growth in recovery for Mississippi.”
Reeves also announced additional counties that have qualified to be under mask mandates under his ‘safe recovery’ executive order that is in effect through December 11th. The following counties are: Hinds, Madison, Pontotoc, Tate, Winston, Itawamba, and Montgomery counties.
As of now 22 of Mississippi’s 82 counties are included in this executive order.