TAXPAYER PAY RAISE ACT
Jay C. Moon, CEcD, FM, HLM President and CEO of the Mississippi Manufacturers Association
During the recent legislative session, a comprehensive bill known as the Taxpayer Pay Raise Act was passed by the legislature. On May 13, 2016, this bill was signed by the Governor. One of the provisions of that bill is a ten year phase out of the franchise tax. In my opinion, that is smart public policy. The franchise tax levies $2.50 per $1,000 of capital in the state. Most states don’t have a franchise tax. That makes Mississippi non-competitive. And, to compound the problem, we are one of nine states that levy this tax on all capital a business has in the state.
Recently, several individuals and organizations have commented on the wisdom of this reduction. According to critics “our legislature has created a budget shortfall so severe that Mississippi cannot afford to take care of her children.” Further “over the last several years, a majority of legislators have voted repeatedly to reduce state revenue through enormous tax breaks at the request of corporate lobbyists.” These critics may talk a lot about education, but, in my opinion, their education is in need of an update.
Geography – We compete with countries around the world in a 21st century marketplace.
Mathematics – Throwing money at something does not add up to a positive result.
Economics – If one state charges you for operating in its borders and most of the others do not, where do you think the businesses will locate or expand?
History – Doing the same thing over and over will only get us the same results.
No one argues with the importance of education. The business community relies on the availability of an educated workforce. However, it would seem obvious that if Mississippi does not compete for good paying jobs, then those who graduate from our schools and training centers will do what many have done in the past – leave.
Magnolia Tribune
