Mississippi Governor Tate Reeves has signed a historic income tax elimination bill into law as part of the “Build Up Mississippi Act”. The bill, known as House Bill 1, will gradually reduce the state’s individual income tax rate to 3% by 2030 and eventually down to 0%. To offset the lost revenue, gasoline taxes will be increased, and grocery taxes will be lowered from 7% to 5%. This bill follows a previous 2022 house bill that provided the largest income tax cut in state history.
Governor Reeves expressed pride in signing this bill, stating that he is pleased to eliminate the individual income tax in Mississippi. The legislation was rushed through the house after the Senate requested changes, including clarifications on the sunset provision of the tax cut.
The signing of this historic bill marks a significant step forward for Mississippi in terms of tax reform. Supporters of the bill believe that it will lead to economic growth and attract businesses to the state. However, critics have raised concerns about the potential impact on the state’s budget and the state’s ability to fund essential services.
Overall, the passage of this income tax elimination bill represents a major policy change for Mississippi. The state will now begin the process of phasing out the income tax over the next decade, with hopes of boosting economic development and providing relief for taxpayers.
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