House lawmakers have signed a conference report that would begin the elimination of the state income tax. Unlike previous versions of the legislation, it will not reduce the grocery tax, and it will take roughly 20 years to fully phase out the income tax. Representative Trey Lamar chairs the House Finance Committee. He says this would cut around $100 million in revenue each year.
“A billion dollars. We’re talking about taking $100 million of that, 10% of our excess, that’s over and above the 6.1 to 6.2 we’re gonna set our budget at. We’re talking about sending 10% of that back to the taxpayers. That would leave $900 million a year in today’s dollars to spend on things like roads, bridges and other needs of the state.”
The plan also has language that requires lawmakers to revisit the legislation within 6 years, although it could be modified at any time before then. Speaker of the House Philip Gunn says this new draft should address any concerns held by Senate lawmakers related to future drops in revenue.
“That is 1.5% of our budget. On a dollar, that’s a penny and a half. We are contending given the excess revenues we can certainly afford to give a penny and a half on the dollar back to the taxpayer.”
In an email statement, Lt Governor Delbert Hosemann says the senate’s tax plan is “a conservative plan to return money to the taxpayers.” He claims the House’s plan uses outdated information and would underfund many projects in the state. Lt. Governor Hosemann goes on to say “None of us were elected to grid government to a halt. We will not conduct ourselves this way in the Mississippi Senate.” He is calling on lawmakers to hold a joint, public conference meeting to finalize the legislation.
Speaker Gunn says if the House tax plan is adopted, the legislature can move forward with allocating ARPA funds.
