/Senate unveils income tax cut plan, signaling battle among Capitol leaders

Senate unveils income tax cut plan, signaling battle among Capitol leaders

It would also lower the grocery tax, offer a tax rebate of up to $1,000 in 2022, and reduce the cost for car tags. The Capitol will also be the site of a possible tax cut battle, with Speaker Philip Gunn as well as Gov. Tate Reeves is pushing for the elimination of the state income taxes over time. However, they disagree on specifics. “This plan is simple and straightforward, and it’s sustainable. It addresses all your needs,” stated Lt. Gov. Delbert Hosemann. “This addresses inflation and cost-of-living increases that hit you at the grocery shop and when you fill up your gas tank. It also addresses teacher raises and infrastructure needs. Gunn said Tuesday that he hadn’t seen the Senate plan in detail, but stated his firm support for eliminating the income tax. Gunn, a third-term speaker, called his plan to eliminate income tax the most important legislation in his political career. Gunn stated that a tax cut that returns a small amount to citizens but does not eliminate it is not what we are interested in. Similar statements have been made by the governor. We will soon be able to present analysis that shows the differences between the two plans. “We still believe that our plan is real and conservative tax relief.” READ MORE. Speaker Gunn’s plan for eliminating income tax and reducing food tax. Unlike the House plan which would have seen income tax cut in the Senate, these cuts would not be offset with an increase in sales tax or any other taxes. The Senate plan does not require revenue growth to allow the cuts to take place, unlike the House plan. The Senate’s $446 Million tax cut proposal would: Senate Finance Chairman Josh Harkins (R-Flowood) announced the plan Tuesday to the Senate Finance Committee and provided a white paper with general details. Harkins stated that the bill’s full text will soon be available. Harkins and other Senate leaders are working on a tax reduction plan since last year after Gunn’s initial attempt to eliminate income taxes was killed by the Senate. READ MORE: Experts give advice to lawmakers as they consider eliminating income taxes. The House already sent its income tax elimination plan to the Senate. It includes cuts to the grocery tax and a 1.5-cents-on-the-dollar increase in the sales tax, which would bring the state sales tax to 8.5%. The plan would eliminate the state income tax in a decade, depending on how revenue grows. Although the House plan was initially introduced by Gunn last year, there has been some criticism and skepticism among business leaders and others. However, Gunn and other House leaders have said that they have modified it to address these concerns. The original version of the sales tax was cut, and all other tax increases were eliminated from the plan. Gunn stated that the House plan completely eliminates income tax in a responsible manner. It is our desire that more money be put into the pockets and pockets of our citizens. We have an opportunity now like never before. He stated that the state’s current budget is bursting with pandemic-stimulus dollars, which he called “cocaine federal government,” and that it will soon dry up. He noted that lawmakers in this session have pledged hundreds of million dollars per year to increase spending on such things as teacher pay increases and new spending. Harkins stated that Mississippi has experienced a record year of revenue. Therefore, it was crucial to me that we create a sustainable tax relief plan that returns taxpayer money to taxpayers while not raising rates. “The most important thing conservatives can do is get it right — and this plan allows us to cut substantial amounts while still balancing our budget,” Bailey Martin, Reeves’ spokeswoman, said Tuesday: “Governor Reeves appreciates the Senate’s interest [in cutting taxes for Mississippians]. Reeves looks forward to reviewing their plan, and believes the legislature should act boldly in this session to transform our taxes by eliminating the incometax. While Reeves has previously criticized Gunn’s plan for being a “tax swap” because it increased sales taxes to offset the elimination of the incometax, he has been more gracious to Gunn and the House leadership. Fellow Republican Hosemann pointed out that the Senate’s income tax cut plan was based on tax cuts made by former Lieutenant Governor. Gunn and Reeves were the ones who championed the 2016 state’s elimination of the 3% income tax bracket. They also continue to phase out corporate franchise taxes. Hosemann stated that he and the Senate leadership would “enthusiastically support” their plan, while Harkins and Harkins declined to comment on the House plan.