JACKSON, Mississippi– A fifteen year state tax income elimination plan passed the Ways and Means committee Tuesday morning.
“We want to give a meaningful tax relief to the working families of Mississippi,” says Speaker Phillip Gunn, “that will give significant relief to the working families that pay that tax.”
Brad Mayo wrote HB1629.
“It kicks in only after there is three percent growth,” says Mayo, “it is a prudent plan… we looked at other states to see what has worked and hasn’t worked.”
The plan is based on three years of three percent revenue increase.
“There is no catch-up provision,” says Mayo, “if we only increase two-point-eight percent, we won’t have a cut that year, and it won’t double up the next year.”
The cut doesn’t affect this year’s budget. The plan doesn’t take effect until the latter half of the 2017 budget. Mayo says the plan wasn’t entered lightly.
“We’d like Mississippians to enjoy their money,” Mayo says, “we’ve had to make tough budget decisions over the last three years. We’ll now reap the benefits of those years.”
Speaker Gunn says this is going to be a significant relief to families and that he doesn’t see why anyone would vote against it. Gunn says this won’t affect any other tax.
“It is income tax only,” says Gunn, “it’s not that hard. It’s not that complicated.”
And here is Speaker Phillip Gunn’s comments following the press conference:
Here’s how the cut would work:
- Mississippi family that makes $30,000 a year – $1,350 Raise
- Mississippi family that makes $50,000 a year – $2,350 Raise
- Mississippi family that makes $70,000 a year – $3,350 Raise