Income tax elimination in discussion at state capitol

JACKSON — Taxpayers in Mississippi could see lower car tag fees, lower state taxes, and grocery taxes if Republicans in the state Legislature can grind their way to approval in the next few weeks.

Speaker of the House Phillip Gunn said his majority wing was able to find bipartisan support with all three tax bills.

Mississippi Legislators have been tasked with finding areas of support in order to address a $1 billion cash surplus. The cash bounty has come about through policy implementations by the GOP run legislature and funds from the American Rescue Act that was approved and signed back in March. 

The $1 trillion plan has provided state governments with about $600 billion in funds to improve infrastructure and other public service projects.

For Gunn, a new budget that will help address tax issues that will help all Mississippians and address some issues with health care worker shortages, COVID-19, along with highways and bridges is a must.

“We are working toward finished the budget," Gunn said. "We feel it will be a solid budget. The car tags cut is in it. We are also making progress toward the elimination of the state income tax.

"By getting these priorities done, we will greatly help the tax payers of Mississippi. We will be putting more money into their pocket. The car tag bill reduces their tag fees by 50 percent. We are also lowering the grocery tax and the state income tax, When you put all of this together, it will be great thing for our people."

Democrats were supportive of the car tags measure.

"They got behind it," Gunn said. "It passed by a 107-4 vote."

The bills now go to the Senate. 

Republican state Sen. Jenifer B. Branning of Philadelphia is another supporter of the reduced car tags.

“I really like this,” she said from her legislative office. “We have started with steps toward doing away with the state income tax, but like I've said before, the devil is in the details.”

Any measures to lower taxes will be met favorably Branning believes.

"The people of Neshoba County will appreciate these measures, absolutely," she said.

One bill that Branning did not support was medical marijuana.

"I was a no vote on this," Branning said. 

As for the growing pool of excess funds available to the Legislators in 2022, Branning, who heads the Senate's Highways and Transportation Committee, wants to address infrastructure issues.

"Our state’s infrastructure. In my five years here in the Senate, we have addressed this and have made great progress.”

Branning points with pride of the ongoing construction of Highway 19 that will someday link Philadelphia with the completed four-lane at House.

"We are in the first phase of the Highway 19 project and it is on track to be completed by this fall," Branning said.

As for the second phase, Branning said her committee must look for funding sources.

“That’s what we are looking at next, so those different funding sources. We know we have needs all over the state. But since 2018, we have working on improving our infrastructure,” Branning said.

Rep C. Scott Bounds of Philadelphia said the main reason why Mississippi is in good financial shape now was the heavy lifting it did policy-wise during the Phil Byrant administration and continued by current Gov. Tate Reeves.

"We have about a billion more today," Bounds said of the state’s current surplus coffers.  ‘This was made possible by the policies we implemented five years ago. We lowered tax brackets. We got rid of the franchise tax. This helped spur economic growth. We then promoted the state's healthy business climate.”

There are areas Bounds is looking to address with the excess funds.

“We are committed to a teacher pay raise. We are committed to funding more for our roads and bridges,” Bounds said. “We also want to shore up broadband, especially in the rural areas.”

Healthcare and dealing with COVID-19 and its problems are also on agenda, Bounds said.

“There are things we are looking at in health care,” he said. “We need to find away to ease the burden of these staff shortages.”

Branning said, she supports this as well.

“We need to find the most plausible solution to the shortage of nurses,” Branning said.

As for medical marijuana, Bounds said he is approaching the matter with an open mind.

“It now with us in the House and we will begin the process,” he said. “There will be changes made from the Senate bill. And it will likely change some more.”

Gov. Reeves had come out against the legislation last year objecting to the potency.

“I don’t know if Gov. Reeves will like this bill,” Bounds said. “But maybe with the changes we make, he will find it more susceptible to at least consider it.”

One thing that is easy to accept for Bounds is the push to reduce taxes.

“This is a win-win for all Mississippians,” Bounds said. “We passed the car tag measure by more than 100 votes. By reducing the car tags, the income tax and the grocery tax, we will get more dollars into the hands of people here in Mississippi. That is what the House wants to do most. To get money back into the hands of our people.”