Submitted by Grover Norquist
Gov. Tate Reeves and the Mississippi legislature have placed Mississippi at the forefront of the nationwide movement to eliminate state income taxes.
Mississippi is on the verge of becoming the tenth no-income-tax state.
Today, there are eight states that do not impose personal income taxes of any kind: Texas, Florida, Tennessee, Nevada, Wyoming, South Dakota, Washington and Alaska. New Hampshire will be the ninth no-income-tax state thanks to a recently enacted bill to phase out their tax on interest and dividend income.
These states are doing well. Very well. For the second year in a row, the U-Haul Growth Index finds Texas, Florida, and Tennessee were the top growth states in 2021, meaning they experienced the greatest net gain of one-way U-Haul trucks.
“With a strong job market and low cost of living, it’s a no brainer. Texas doesn’t have an income tax, so families get more for their money,” explained U-Haul Company of South Austin president Kristina Ramos.
Americans are staying in states where they are allowed to keep what they earn, where their hard work is respected.
While President Biden and congressional Democrats attempt to impose enormous federal tax increases, red states are working to reduce and eliminate their income taxes. Last year 14 states passed significant income tax cuts.
This list includes two of Mississippi’s neighbors, Louisiana and Arkansas, as well as Arizona, which is now moving to a flat income tax rate of 2.5% over three years.
In order for Mississippi – which U-Haul ranks 37th from the top for growth in 2021, down from 31st in 2020 – to become more competitive, now is the time for all state legislators to join in the campaign to phase out the state income tax.
Mississippi’s current income tax is not competitive. Regional neighbors Tennessee, Texas and Florida all have zero income tax. Mississippi’s top income tax rate of 5% is now higher than Louisiana’s and will soon be higher than Arkansas’ because in 2021 that state passed phased-in rate reduction.
Fortunately, Mississippi’s leaders are working tirelessly to find a way to put the state income tax on the path to zero as soon as possible. Gov. Reeves is optimistic that an income tax elimination bill will be delivered to his desk this year.
“Eliminating the income tax is a must if we want Mississippi to remain competitive in the economy of tomorrow,” said Governor Tate Reeves. “I’m optimistic that when it comes to providing Mississippians with meaningful tax relief during this legislative session, the only buck we’re going to be passing is back to our state’s taxpayers.”
House Speaker Philip Gunn, House Speaker Pro Tempore Jason White, and House Ways & Means Committee Chairman Trey Lamar’s House Bill 531 was approved by the Mississippi House of Representatives. This bill, also known as the Mississippi Tax Freedom Act of 2022, would responsibly phase out the state income tax in just over 10 years.
“I am extremely proud of my House colleagues for their overwhelming vote in favor of eliminating the income tax and reducing the grocery tax and car tags,” said Speaker Gunn. “Delivering this historic tax relief now lies in the hands of the Senate.”
Every year, more states begin the drive to limit runaway government spending and reduce income tax rates as future revenues allow with the goal of taking the personal income tax to zero. Mississippi is poised to cross the finish line ahead of many competing states.
Eliminating the income tax would enable Mississippi to compete with the no income tax states for businesses that are looking to expand, investors who are looking for growing economies, and families who are looking for greater opportunities.
This would be a huge win for all Mississippians. Individual taxpayers and families will keep more of their hard-earned paychecks, and benefit from the new jobs and higher wages that would come from this pro-growth tax relief.
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Submitted by Grover Norquist. He is president of Americans for Tax Reform, a taxpayer group founded at the request of Ronald Reagan.
Magnolia Tribune
