Mississippi Gov. Tate Reeves said Monday that the state should phase out its individual income tax by 2030 to attract new residents and businesses that could boost economic growth.
“We, as a state, need to think big,” said Reeves, a Republican who became governor in January. “What can we do to make a splash? What can we to do to say to the world, ‘Not only do we want you to invest capital here, we want you to move here?"
Mississippi's population has grown slowly this year after declining in recent years. Florida, Texas and Tennessee, which do not have an individual income tax, have grown rapidly.
“Let's eliminate the income tax, which is one huge speed bump to long-term economic growth and recovery for Mississippi," Reeves said.
Legislators often ignore budget ideas from any governor, and Reeves could face bigger challenges than usual because of uncertainty caused by the coronavirus pandemic.
The individual income tax is one of the largest sources of Mississippi tax collections.
During the fiscal year that ended June 30, the state collected about $5.8 billion from all types of state taxes, fees and other sources, including lawsuit settlements, according to the state Department of Finance and Administration. The biggest chunk of money, about $2.2 billion, came from sales taxes. The next-largest source was about $1.8 billion from individual income taxes.
The Mississippi Department of Revenue says the state does not charge individual income tax for the first $6,000 for a single person or the first $8,000 for the head of household — one person with at least one dependent. The exemption for a married couple is $12,000.
Mississippi charges no individual income tax on the first $2,000 of taxable income. It charges 3% on the next $3,000, 4% on the next $5,000 and 5% on all taxable income over $10,000.
1 day, 1 hour ago
'People are going to die': Governors, lawmakers rip Biden rationing of COVID treatment as partisan
1 day, 19 hours ago
New Gallup low for Biden, even below Harris
A new Gallup survey shows that President Joe Biden has not hit bottom yet in his polling freefall.
2 days ago
Abbott Blasts Biden Over Border Crisis: ‘It’s Total Chaos,’ ‘They Need To Up Their Game, Big Time’
Texas Governor Greg Abbott (R) blasted President Joe Biden on Tuesday as state and federal authorities attempt to rein in a flood of illegal migrants crossing over the U.S. southern border.
4 days ago
Iowa Poll: Gov. Kim Reynolds' job approval, handling of the economy, education ratings inch higher
Iowa Gov. Kim Reynolds’ job approval rating has inched up since June — a change driven by Iowans who like the way she’s handling the state economy
4 days, 1 hour ago
26 Governors Seek Meeting With Biden Over Border Surge
Twenty-six Republican governors are urging Joe Biden to do more to address the deteriorating situation along the southern U.S. border.
1 week ago
Gov. Kristi Noem: If President Biden mandates vaccines, South Dakota will see him in court
Opposing View: I’d encourage Americans to get vaccinated, as I did. But that choice is theirs to make – not the federal government’s to make for them.
1 week, 1 day ago
Biden's polling dip threatens Virginia’s McAuliffe and New Jersey Gov. Murphy
New polls following the administration’s bungled Afghanistan withdrawal and inability to slow the spread of the coronavirus show a growing lack of faith in Biden which may extend to those who have embraced him