Gov. Reeves signs largest tax cut in Mississippi history into law - Action News 5
JACKSON, Miss. (WMC) - Mississippi Gov. Tate Reeves signed into law the largest tax cut in state history on Tuesday.
It’ll phase in more than $500 million in tax cuts over the next four years.
Supporters of the tax cut are counting on it to produce great growth for Mississippi. But the world is a very unpredictable place and some worry the tax cut will harm the state.
Supporters say it will save families hundreds of dollars a year and make the state more competitive in the years ahead.
“This is a tremendous victory and it will make a massive impact on the lives of Mississippians and it will make a tremendous impact on our economy for years and years to come,” said Reeves.
Starting next year, the state’s four percent tax bracket will be eliminated. Then, over the next three years, the five percent tax bracket will gradually fall to four percent.
Mississippi House Speaker Phillip Gunn says a single tax filer who earns $40,000 would save more than $400 dollars a year.
A married couple with a combined income of $80,000 dollars would save over $800 a year. But some worry the massive tax cut means the state won’t have the money it needs in the years ahead for things like education and roads.
State Senator David Jordan shared his concerns with Senate Finance Committee Chair Josh Harkins moments before the tax cut passed.
“What I’m worried about is we’re digging a hole that we may not be able to fulfill and we may not be able to carry on business for the people who we’re giving money back to at this time,” said Sen. David Jordan, D-Greenwood.
“We took in a billion dollars extra last year,” Harkins responded. “We’re on pace to take in almost a billion this year. And I believe that leaves plenty of room for us not only to invest in our state, but to give the taxpayers the people that get up and go to work and earn the money and a little bit of their wealth back.”
Supporters of the tax cut also say the state will reassess things in four years and make adjustments as necessary.
Some lawmakers and the governor wanted to eliminate Mississippi’s income tax entirely. This does not do that, but they say it takes a step in that direction.
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source: https://www.actionnews5.com/2022/04/05/reeeves-signs-largest-tax-cut-mississippi-history-into-law/
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