State taxes could be a thing of the past under new bill
JACKSON, Miss. (WLBT) - Mississippi could join other states in eliminating the state’s income tax.
The major tax exemption, House Bill 1439, would create the Mississippi Tax Freedom Act of 2021.
The bill has passed the Ways and Means Committee, which means it’s now in the hands of the full House for a vote.
Here’s what is included in the bill:
- Eliminating state income tax in 10 years
- Grocery tax will be reduced from 7 to 4 percent
- Sales tax on cigarettes, alcohol, and other items would increase.
- Sales tax would increase to 9.5 percent.
Authored by Speaker Philip Gunn and co-authored by Representatives Jason White and Trey Lamar, lawmakers say it could save families thousands of dollars.
The first year, individuals making under $50,000 a year and married couples making less than $100,000 a year would be exempt from income taxes. Then, it’s bumped up to $100,000 for an individual and $200,000 for a couple within five more years.
It’s then projected to be completely eliminated over the course of 10 years, however, critics argue it would do nothing to improve employment in the state and do very little to help working families.
Gunn is expected to give more details about the proposal at 10 a.m. Tuesday.
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