JACKSON, Miss. (WLBT) - Mississippi Governor Tate Reeves proposed eliminating the state income tax.
It’s part of his Fiscal Year 2022 Executive Budget Recommendation.
Reeves says eliminating the income tax would save nearly $2,000 per year for Mississippians earning $40,000.
The three percent income tax could be eliminated as early as 2022.
Seven states currently do not impose a state income tax Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
“Because this plan is a phased approach, we will be able to ensure adequate funding will be available for education, law enforcement, health care, and transportation priorities,” Governor Reeves said. “It will not be necessary for us to increase other taxes in order to make up for lost revenue from the elimination of the income tax.”
The budget plan also calls for funding police, protects small businesses, creates a “Patriotic Education fund," as well as other issues.
Reeves is recommending $2 million to train teachers for computer science courses to provide K-12 students with coding, cyber training, robotics and artificial intelligence skills. Another $3 million is recommended to coach math.
Another $50 million would go to accelerate workforce growth with expanded college training programs, scholarships for low-income students, and improving IT skills.