Gov. Tate Reeves has signed a bill to overhaul Mississippi’s tax system, aiming to eliminate the state income tax in about 14 years.

Summary

Gov. Tate Reeves signed a tax overhaul bill into law that phases out Mississippi’s income tax over 14 years, aiming to make the state more economically competitive.

Due to typos, the bill nullifies intended economic growth triggers, potentially accelerating tax elimination.

It also cuts the grocery tax from 7% to 5%, raises the gas tax by 9 cents, and changes public employee retirement benefits.

Critics warn of a $2.6B annual revenue loss, risking vital services in the nation’s poorest state. Officials remain divided on the bill’s long-term impact.

  • NotMyOldRedditName@lemmy.world
    1·
    1 day ago

    Just a further thought…

    It’d be interesting if the tax could automatically increase if these goals that were met, were no longer met.

    So to go from 3% to 2% you need to generate an extra billion revenue, but if you lose that revenue it then climbs back to 3%.

    It would really complicate the system… you’d essentially need to always be set up to charge income tax, but then have a variable rate that updates the systems maybe quarterly or yearly. But you couldn’t ditch the system entirely since you’d need companies to have a method to suddenly start charging it again if it had to go from 0% to 0.5%