Abolishing state income tax would mean:
The problem, however, is how to abolish the state income tax?
In 2020, Governor Reeves proposed phasing out the income tax over time. Then, earlier this year, House Speaker Gunn proposed the largest tax break in our state’s history, removing the requirement to pay any income tax on the first $40,000 anyone earned ($80,000 if you are a married couple).
But how can we do this and ensure that the sums still add up?
Concerns have been raised about the idea of paying for income tax eliminating by raising taxes on other things, and the Speaker’s proposal involved a 2.5 percent rise in the state sales tax.
Since an agreement could not be reached, the Speaker’s proposal stalled in the legislature.
Now, however, there is a real opportunity to bring all sides together and find a way of making this work.
For years, politicians in Jackson have found ways of spending your money. If we can find an agreement to abolish the state income tax, we will be committing future increases in tax revenue to give people tax breaks, not more public sector fat cats.
With the state budget almost $1 billion in surplus, now is the time to make this happen.