House Bill 1439, called the Mississippi Tax Freedom Act of 2021, would phase out the state income tax over ten years. During a news conference, Republican House Speaker Philip Gunn said under the measure, singles making $50,000 per year or less and couples making $100,000 or less would immediately see their income tax eliminated.
“When fully phased in, $1.9 billion of income including the grocery tax will be returned to the pockets of Mississippians. That is huge ladies and gentlemen. That is a great day for Mississippi,” said Gunn.
Gunn said the bill reduces the grocery tax from 7 percent to 3.5 in phases. To fill the budget hole, left by the tax cut, Gunn says the sales tax for items like cigarettes, clothing and cars would increase from 7 to 9.5 percent. He added revenue growth would also help with the budget. During floor debate yesterday, House Democrat Christopher Bell of Jackson expressed his concern.
“My concern is how is it going to affect those individuals who don’t make enough money, who are out here dealing with this increased tax. How do we explain that,” said Bell
Republican Trey Lamar the Ways and Mean Committee Chair from Senatobia presented the bill. He said cutting the income tax and the grocery tax will help low-income Mississippians.
The measure goes to the Senate for further consideration. The governor has expressed support for ending the income tax.
