New tax plan?: Gov. Barbour pledged revamp
Mississippi’s sales tax is the second highest in the nation at 7 percent, trailing only California. Mississippi is now one of only two states that charge the full state sales tax rate on food and that tax is the highest in the country.
Mississippi’s cigarette tax is the third lowest in the country.
Mississippi ranks about 33rd in the nation in gas taxes and 34th in the nation in diesel taxes.
Mississippi’s personal income tax system consists of three separate brackets with a top rate of 5 percent kicking in at an income level of $10,000. That top rate ranks 7th lowest among states levying an individual income tax.
Mississippi’s corporate tax structure consists of three brackets and a top rate of 5 percent kicking in at a corporate income level of $10,000. Among states levying corporate income taxes, Mississippi’s rate ranks 2nd lowest.
Mississippi collected $40,241,000 in property taxes during Fiscal Year 2004, making its combined state/local property taxes $1,859,756,000, which is $641 per capita and ranked 40th nationally.
Mississippi taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of federal tax collected in 2004, Mississippi citizens received approximately $1.77 in the way of federal spending – ranking the state 4th highest.
Mississippians – still the poorest people in America in terms of per-capita income – pay very high sales taxes, very low corporate income taxes, relatively low personal income and personal property taxes and moderate fuel taxes in comparison with the rest of the country.
How Barbour chooses to lead any tax restructuring will say a lot about his priorities for Mississippi. The current state tax structure is regressive in the extreme – meaning that the poor suffer under it.
If Barbour is sincere about meaningful tax reform, it can’t come a minute too soon. A comprehensive tax study isn’t a bad idea, either. The entire structure needs review.
Clarion Ledger Editorial
12/31/7
Magnolia Tribune
