JACKSON, Miss. (WLBT) - Wouldn’t it be great to not pay state income taxes? I think most Mississippians would answer yes.
The Governor says he believes it will be great for the state, and he might be right, but he has no proof to back it up.
What he does have is nothing more than hope, and I have always been taught, “Hope is not a good business plan.” As Lieutenant Governor Delbert Hosemann says, we can’t cut a third of our tax revenue based on a wish to make it up.
Cutting the state income tax may be a great plan, and certainly is something to promote and market when recruiting businesses and people to relocate to Mississippi. However, we should have a plan to offset that loss.
If you’re like me, I still want smooth roads, police and fire protection, great schools, reliable healthcare, etc., etc., etc.
In other words, the basic responsibilities of federal, state and local government. One way to make the transition to no state income tax is to implement more use taxes, like an increase on our gas tax.
The best thing about use taxes is the people who are using the service, like our highways in the gas tax example, are the people who are paying to maintain our roads. And with so many out-of-state vehicles traveling our highways, we get the benefit of other people supplementing the funds for our infrastructure improvements.
Eliminating the state income tax is a great political soundbite, but that can’t happen without a plan to make up the deficit.
It gets complicated when you have to transition a wish into an action plan, but that’s where the rubber ultimately hits the road.