During the two-hour debate on the Senate floor, lawmakers discussed how Senate Bill 3164 could affect the state. The bill would eliminate the state’s 4% income tax bracket, state car tag fees, and reduce the grocery tax without raising additional taxes. Senate Finance Committee Chair Josh Harkins of Flowood spoke in favor of the bill.
Senator Harkins says “We’re trying to be fiscally responsible that we operate with the mantra that we don’t use one-time money for recurring expenses. This plan uses recurring revenue for recurring expenses. It looks at all those factors when considering the impact of this tax cut.”
The tax plan from the House would completely eliminate the state income tax, and increase some taxes to adjust for lost revenue. Republican Senator Chris McDaniel of Ellisville says both bills are insufficient and says the state must remove the income tax without raising additional taxes.
“The House, with their economist, and their calculators, they say we can do it,” says Senator McDaniel. “Every think tank I’ve seen with the exception of one economist who incidentally works for the state, in some respects is very biased, all but one in this body seems to think we can’t make the move. I’m trying to question why. How imprudent is it for us to have this once-in-a-lifetime opportunity and not take it?”
Democratic lawmakers raised concerns about how the elimination of major revenue streams could affect state spending. Senator Hob Bryan of Amory spoke against the bill.
Senator Bryan says “It’s a sad situation that we’re here having this debate and not focusing on the critical needs that the state has. Just think about your folks back home. Are they clamoring for a tax cut, or are they clamoring for roads, and water, and sewer, and schools, and broadband.”
The bill passed the Senate with a vote of 40-11, with all dissenting votes among democrats.
