Reeves has very limited legislative power during regular session. He did not say that he would call special session or veto any budget bills. These actions would be Reeves’ primary leverage in any fight with legislators. The first-term Republican governor stated that he was ready to do whatever it takes in order to eliminate Mississippi’s income tax. “We will work together over several days to get it done… We’re going to eliminate Mississippi’s income tax.” Reeves made the declaration during a press conference in his state Capitol office. This was as lawmakers prepare for key negotiations to develop a budget and finalize other major proposals. As the session closes on April 3, the deadlines are nearing, work will continue on the budget and other important bills throughout the weekend. Reeves’ goal of eliminating the income tax has received support from the House. Speaker Philip Gunn has made eliminating the income tax his top priority and presented many proposals to that effect. However, Senate leaders led by Lt. Governor. Delbert Hosemann, the Senate leader, has resisted the call to eliminate the income tax. It is the second-largest source of revenue for the state. Instead, Senate leaders proposed an alternative proposal which merely reduces the income tax. This would still be the biggest tax cut in state history. PODCAST: Why is Lt. Governor. PODCAST: Why Lt. Gov. Delbert Hosemann opposed income tax elimination Gunn tried to reach a compromise on Wednesday with the Senate. He presented his latest proposal to them — a modest plan to eliminate the income tax by $100 million per year. This would mean that it would take 18 or more years to complete. Reeves stated that while I appreciate the House’s efforts to reach a compromise, their $100 million cut in year one and their 18 years to make it happen is too much. Gunn stated that the plan to eliminate the income tax $100m per year is not what Reeves wants. However, he is working with the Senate to find a compromise. Gunn responded to Reeves’ announcement that the income tax elimination plan would pass this year by saying: “Here, we are two days away from deadline and we see his (Reeves) first proposal. Gunn stated that he would support Reeves calling an urgent special session if there is no compromise by the weekend deadline. READ MORE: Speaker Philip Gunn reduces his proposal for income tax elimination. On Thursday, Reeves proposed reducing the income tax by $600,000,000 by dropping the top marginal tax from 5% to 3.5%. Reeves stated that this would reduce tax liabilities by around 30% for everyone. His proposal would reduce the marginal rate of 3.5% by one-half percent each year, until it is eliminated. Mississippi currently has three tax rates. However, the 3% marginal rate was eliminated by a 2016 bill. This would mean that income over $5,000 will be subject to a 4% and $10,000 incomes above $10,000 taxes. Exemptions are not allowed. Reeves’ plan would reduce the 3.5% tax rate by one-half percent per year, so that it would only be 3.5% as of 2023. Reeves stated that Mississippi has seen unprecedented growth in tax collection. The governor stated that Mississippi’s financial specialists are projecting that the state will be able to collect $1.2 billion more revenue than the $5.8 million budgeted for the current fiscal year. Reeves stated, “It’s time to give the money back to taxpayers.” Corey Miller, State Economist, and others have cited an unprecedented number of COVID-19 federal aid funds that came into the state as the main reason for the huge increase in revenue collection. Similar tax collections booms are being experienced in other states, he said. Hosemann stated that revenue collections will not continue at the current pace and suggested it would be prudent to consider tax cuts but not completely eliminating income tax. Hosemann stated in a recent statement that the Senate had proposed $439 million in recurring tax cuts to go along with the $235 million ($674million total) cuts. This conservative plan will return money to taxpayers. We have not stated that we don’t support Mississippi eliminating its income tax. This is despite spending many hours with the House discussing this issue. Hosemann said that we can make further cuts at any moment. “Taxpayers expect that we will be responsible stewards for tax dollars. The Senate’s plan includes tax cuts and core government services. It is not about gutting them. Past Senate proposals have also reduced the 7% grocery tax. This is the most significant state-imposed food tax in the country. Reeves said that he wouldn’t oppose the elimination of the income tax but has not supported cutting the grocery tax. READ MORE: Local governments and counties call for federal stimulus spending to be approved amid tax cut impasse