Mississippi Phasing Out State Income Tax
Mississippi Governor Tate Reeves signed legislation to phase out the state income tax, aiming to enhance the state's competitive edge. The bill reduces sales tax on groceries and eliminates the income tax over a period of ten years. Reeves highlighted the importance of this move to attract business and workers to Mississippi, especially in comparison to neighboring states without income tax.
Key Points
- Reduces sales tax on groceries
- Eliminates state income tax over a ten-year period
- Aims to level the playing field with neighboring states without income tax
Pros
- Enhances Mississippi's competitive advantage
- Attracts businesses and workers to the state
- Promotes economic development and growth
Cons
- Potential impact on state revenue depending on how revenues come in