3.18.22 – The Center Square
Despite both chambers reworking income tax legislation, Empower Mississippi says the House and Senate have made progress but remain miles apart on the future of income tax in the state.
Russ Latino, president of Empower Mississippi, said the chambers have “come closer” in their separate proposals addressing the potential elimination of income tax in the state.
“I continue to believe we can be more aggressive, immediately moving to a flat tax between 4 and 4.25 percent and then phasing out the income tax with a population plus inflation style trigger,” Latino said. “This would be a far simpler plan with fewer moving parts and more economic benefit.”
House Bill 531 works to eliminate the income tax by increasing the amount of exemptions for taxpayers. The bill would raise the tax exemption to $37,700 for single filers and $75,400 for joint filers beginning this year. The bill also takes into consideration the state’s budget surplus stemming from the infusion of federal American Rescue Plan Act dollars and state tax collections.
Senate Bill 3164 would only eliminate the income tax on wage earners bringing home between $5,000 and $10,000 per year. The plan would then slowly reduce the income tax from 4% to 0% over the next four years.