Chair of the Senate Finance Committee, Republican Josh Harkins of Flowood, says there isn’t enough support in the chamber to pass a bill that would restructure Mississippi’s income tax. He says more study is needed and he let the measure die.
“We want to make sure whatever we put forward it is a working solution. And it’s not going to be something we’re going to be back visiting and making changes to because we didn’t think about something and given the short period of time we’ve had to work on it. it’s just not really possible for us to feel comfortable putting something out there,” said Harkins.
The House bill would phase out the state income tax over 10 years, cut the grocery tax in half from 7 percent to 3.5 and the sales tax would have increased from 7 to 9.5 percent. But later yesterday House lawmakers kept the bill alive by putting it into another measure. Representative Trey Lamar of Senatobia, chairs the Ways and Means Committee.
“It is time for bold action. It is time to continue to fight. And so the House will continue to push forward with what I believe is the most transformative tax policy that this state has seen in generations,” said Lamar.
The House passed the bill leaving the grocery tax cut in place and the sales tax increase. But sales tax would no longer apply to loggers, farmers or manufacturers. They also lowered the income level that would trigger eliminating the state income tax. The bill now returns to the Senate for further review.
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