/Tax cut proposal suffers temporary cut of its own

Tax cut proposal suffers temporary cut of its own

Reeves and other Senate leaders desired $575 million in tax cuts. This was achieved by eliminating the franchise tax, increasing deductions available to self-employed individuals, and eliminating the 3- and 4-percent income taxes brackets by 2026. The Senate approved Senate Bill 2858, which was passed 39-11. The House Ways and Committee approved Monday’s scaled-down version of the bill that retained the franchise tax reduction intact. Tuesday saw the addition of a separate amendment to ensure that no tax cuts would be in effect until a state lottery was enacted. Rep. Jeff Smith (R-Columbus), who chairs Ways and Means, stated that “This bill is not going to be sent to the Senate and come back looking any like it did now.” He said that the Senate would likely request a conference committee to discuss taxes. Anything contained in the Senate or House bills will be brought back to the table for negotiation and inclusion as part of a final bill that is presented to that conference committee. Smith stated that any conference bill that includes a franchise tax cut would be killed by the House. Reeves stated that he was pleased to see a bill still alive following today’s deadline, which could provide long-term tax relief for Mississippi families. “I look forward to working in good faith with House leadership to deliver a flatter and fairer tax code, less government, more jobs and a stronger economy.” With hopes of a transportation-funding bill also fading, one House member attempted unsuccessfully to offer amendments to raise money for roads. Robert Johnson (D-Natchez), who was the House Transportation Committee’s leader until this session, demanded a roads plan and a job plan that could create 7,000 construction jobs. “There is a bridge that has somebody’s name on. Johnson advised his colleagues to look in the mirror when that happens. Johnson was referring to the possibility of a state-owned bridge falling apart. According to the Mississippi Department of Transportation, more than 900 of Mississippi’s 5,777 bridges have deficiencies. Replacing them would cost $2.5 million. Smith stated that he believed Sen. Willie Simmons (D-Cleveland), has some ideas for infrastructure maintenance. A call to Simmons’s Capitol office wasn’t immediately returned. The House approved its version with 76 to 42.