RELEASE:
MS House of Representatives Pass Individual Income Tax Elimination
Jackson, MS–Today, the Mississippi House of Representatives passed a $1.5 billion individual income tax cut proposal. The income tax cut in House Bill 1629 (HB1629) will occur over a 15-year period beginning in Fiscal Year 2017 (FY17) and will take place only if there is three percent revenue growth in each fiscal year. The bill passed by a bipartisan vote of 83-32. It now goes to the Senate for consideration.
Currently, Mississippians pay a three percent income tax on their first $5,000 of income, four percent on the next $5,000 of income and five percent on income over $10,000. With the passage of HB1629, authored by Rep. Brad Mayo (R-Oxford), the three percent income tax would be eliminated by 2019, the four percent income tax by 2022 and the five percent income tax by 2030.
“I am so proud of the House members who stepped up to support such a transformative income tax cut proposal,” said Speaker of the House Philip Gunn. “This legislation will make a significant, positive impact on the lives of the hard-working Mississippians paying income tax. They will be able to keep more of the money they earn, in turn stimulating economic growth.”
This particular proposal has been compared to the plan adopted by Kansas that combines income tax reductions, lower sales taxes and elimination of a tax on small business income using no trigger.
“This proposal has no semblance to the Kansas plan,” said Speaker Gunn. “The problem with the Kansas plan is that the tax cuts continue to occur even if revenue does not grow. Under the House plan, revenue growth must be three percent or better for the income tax to occur each year. This means that with a minimum of three percent growth, there would be an additional $3 billion in revenue growth.
“We would give half of that back to the people of this state through this tax cut,” he continued.
Key Points of the Proposal:
15 Year – $1,515,920,217 individual income tax elimination
3% bracket eliminated by 2019
4% bracket eliminated by 2022
5% bracket eliminated by 2030
3% revenue growth required
Mississippi family that makes $30,000 a year – $1,350 Raise
Mississippi family that makes $50,000 a year – $2,350 Raise
Mississippi family that makes $70,000 a year – $3,350 Raise
2/25/15
Magnolia Tribune
