A day after the House and Senate leaders came to an agreement on a tax relief proposal, both chambers overwhelmingly voted for the bill today.
House Bill 531, the Mississippi Tax Freedom Act of 2022, will lower the top marginal income tax rate from 5 percent to 4 percent over the next four years. The final bill passed the House 92-23 and the Senate 39-10.
The agreement phases in the more than $500 million tax cut over the next four years.
– In the first year, it would eliminate Mississippi’s current 4 percent bracket that currently applies to the first $5,000 in taxed income.
– In years two through four, it would reduce the rate that applies to all income over $10,000 from 5 percent down to 4 percent.
The end result would be a higher threshold before any taxes are owed and a lower, flat rate on all taxable income. When fully phased in, Mississippi will be one of just 10 states with a flat tax and will have the fourth lowest rate among the 41 states with an income tax.
The bill will soon head to Gov. Tate Reeves for his signature.
House and Senate conferees have reached a deal to provide Mississippians with the largest tax cut in the state’s history over the next four years.
The agreement phases in the more than $500 million tax cut over the next four years. In the first year, it would eliminate Mississippi’s current 4 percent bracket that currently applies to the first $5,000 in taxed income. In years two through four, it would reduce the rate that applies to all income over $10,000 from 5 percent down to 4 percent. The end result would be a higher threshold before any taxes are owed and a lower, flat rate on all taxable income.
The agreed upon bill language now goes to the full House and Senate for an up or down vote.
“If passed and signed into law, the agreement reached between House and Senate leadership would represent the largest tax cut in Mississippi history,” said Empower Mississippi President Russ Latino. “It’s good, responsible, conservative policy. Eliminating the current four percent bracket will provide immediate relief to working families. Creating a simple, lower flat tax will make us more competitive across the region and put money back into the pockets of the people who earned it. We’re hopeful the legislature will seize upon this historic agreement.”
Since the beginning of 2021, more than a dozen states have enacted tax reform, a trend that hasn’t slowed down this year. This includes neighboring Louisiana, which recently reduced its top marginal income tax rate from 6 percent to 4.25 percent.
As more states move to lower taxes, Mississippi becomes less competitive both regionally and nationally
Empower has spent two years building the case and need for substantive tax reform in Mississippi, from issuing the first dynamic economic modeling of income tax elimination plans to testifying at joint legislative hearings, from engaging the media with over 1,000 mentions of our work to reaching the general public with millions of views of our content on the web and social media, and from designing and proposing alternate policy suggestions to activating citizens to send over 9,200 emails in support of tax reform.
The deadline for adoption of the conference report is Monday.
Update: Lawmakers adopted the conference report on Sunday, sending the tax cut to the governor. The final bill passed the House 92-23 and the Senate 39-10.
Former President Bill Clinton will be among the speakers May 3 in a ceremony at the Two Mississippi Museums in Jackson honoring the lives of former Gov. William Winter and First Lady Elise Winter.
President Bill Clinton walks with former Mississippi governor William Winter into the Rose Garden of the White House in Washington, on March 22, 1995. Winter spoke before Clinton signed the Unfunded Mandate Reform Act of 1995. Credit: Dennis Cook, AP
Clinton’s tenure as Arkansas governor overlapped with Winter’s term as governor of Mississippi from 1980 until 84. And as president, Clinton appointed Winter to co-chair his Initiative on Race that dealt with the issue of racial reconciliation. The William Winter Institute of Racial Reconciliation, now the Alluvial Collective, also was created at the University of Mississippi.
Also speaking at the event sponsored by the Foundation for Mississippi History will be Reuben Anderson, the state’s first African American Supreme Court justice, and former Mississippi Gov. Haley Barbour.
Winter died in December 2020 at the age of 97 and the former first lady died in July 2021 at the age of 95. Because of the COVID-19 pandemic, there was no public service upon their deaths. The May event will be the first.
After his death, Mississippi Today posted a “homily” by Rob Lowry, the former pastor of Fondren Presbyterian Church in Jackson where the Winter’s were members, honoring the former governor and outlining what he would have said if there had been a service.
Lowry wrote, “Governor Winter was a kind of public servant almost entirely absent on the scene today. He led with a passion for justice and a compassion for his neighbor that was born not of selfish ambition but a sense of responsibility and a profound belief in the promise and possibility of a better tomorrow. Acutely aware of the advantages his hard work and education had earned, he set about to work for the betterment of his home state. That commitment to leave Mississippi better than he found it was the cornerstone of a public life that helped shape our state for half of one century and into the next.”
Winter steered the Education Reform Act of 1982 to passage in an improbable special legislative session right before Christmas, creating public kindergartens among other education changes.
Elise Winter also was active in public service, working with her husband on education issues as first lady and to improve the conditions at Parchman Penitentiary. She was active in Habitat for Humanity and on other issues.
William Winter was a long-time member of the state’s Archives and History Board and, along, with Anderson, who is a member, led the effort to develop the state’s Two Mississippi Museums – the museum of history and of civil rights. He also was critical in the decision of Myrlie Evers to donate to the state the papers of her and her late husband, Civil Rights leader Medgar Evers, who was assassinated outside his Jackson home in 1963.
During the administration of Barbour from 2004 until 2012, Winter and Anderson worked with the then-governor to garner state funding for the Two Mississippi Museums project that has received national praise.
“These museums stand at the intersection of William Winter’s greatest passions—history, education, and racial justice,” MDAH Director Katie Blount said, “Generations of young people will come here to experience the stories that have shaped our state and nation.”
Winter had a long career in politics, serving in multiple statewide offices, and he also served in the Legislature.
Republish our articles for free, online or in print, under a Creative Commons license.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Former President Bill Clinton will be among the speakers May 3 in a ceremony at the Two Mississippi Museums in Jackson honoring the lives of former Gov. William Winter and First Lady Elise Winter.
President Bill Clinton walks with former Mississippi governor William Winter into the Rose Garden of the White House in Washington, on March 22, 1995. Winter spoke before Clinton signed the Unfunded Mandate Reform Act of 1995. Credit: Dennis Cook, AP
Clinton’s tenure as Arkansas governor overlapped with Winter’s term as governor of Mississippi from 1980 until 84. And as president, Clinton appointed Winter to co-chair his Initiative on Race that dealt with the issue of racial reconciliation. The William Winter Institute of Racial Reconciliation, now the Alluvial Collective, also was created at the University of Mississippi.
Also speaking at the event sponsored by the Foundation for Mississippi History will be Reuben Anderson, the state’s first African American Supreme Court justice, and former Mississippi Gov. Haley Barbour.
Winter died in December 2020 at the age of 97 and the former first lady died in July 2021 at the age of 95. Because of the COVID-19 pandemic, there was no public service upon their deaths. The May event will be the first.
After his death, Mississippi Today posted a “homily” by Rob Lowry, the former pastor of Fondren Presbyterian Church in Jackson where the Winter’s were members, honoring the former governor and outlining what he would have said if there had been a service.
Lowry wrote, “Governor Winter was a kind of public servant almost entirely absent on the scene today. He led with a passion for justice and a compassion for his neighbor that was born not of selfish ambition but a sense of responsibility and a profound belief in the promise and possibility of a better tomorrow. Acutely aware of the advantages his hard work and education had earned, he set about to work for the betterment of his home state. That commitment to leave Mississippi better than he found it was the cornerstone of a public life that helped shape our state for half of one century and into the next.”
Winter steered the Education Reform Act of 1982 to passage in an improbable special legislative session right before Christmas, creating public kindergartens among other education changes.
Elise Winter also was active in public service, working with her husband on education issues as first lady and to improve the conditions at Parchman Penitentiary. She was active in Habitat for Humanity and on other issues.
William Winter was a long-time member of the state’s Archives and History Board and, along, with Anderson, who is a member, led the effort to develop the state’s Two Mississippi Museums – the museum of history and of civil rights. He also was critical in the decision of Myrlie Evers to donate to the state the papers of her and her late husband, Civil Rights leader Medgar Evers, who was assassinated outside his Jackson home in 1963.
During the administration of Barbour from 2004 until 2012, Winter and Anderson worked with the then-governor to garner state funding for the Two Mississippi Museums project that has received national praise.
“These museums stand at the intersection of William Winter’s greatest passions—history, education, and racial justice,” MDAH Director Katie Blount said, “Generations of young people will come here to experience the stories that have shaped our state and nation.”
Winter had a long career in politics, serving in multiple statewide offices, and he also served in the Legislature.
Republish our articles for free, online or in print, under a Creative Commons license.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Income tax relief/ repeal efforts continue to drive the story as lawmakers face a Saturday deadline for action to keep either the House or Senate vehicles alive.
Last week, we saw both chambers move toward the other in amending the proposals that were in front of each body. But, as has been happening a lot recently, we saw new proposals put forward.
The latest was a House proposal, which would be a $100 million per year buy down of the income tax rate until it has been eliminated. We then had Gov. Tate Reeves offer a plan to eliminate the income tax over an eight year period.
Under Reeves’ proposal, Mississippi would create a flat tax of 3.5 percent in the first year of the plan. This would have the effect of reducing the tax rate on all income. Under Mississippi’s current tax structure, the second $5,000 of income is taxed at 4 percent and all income over $10,000 is taxed at 5 percent. Reducing the tax rate to 3.5 percent on all income over $5,000 would result in a tax cut of over $500 million next year.
We may very well hear something new today.
Where do things stand?
– The deadline for conference reports on appropriations and revenue bills is tomorrow, March 26. Sine Die is April 3.
– Even if we miss this deadline, but lawmakers come to an agreement, rules could be suspended to bring a bill back.
– The governor has the authority to call a special session at any point.
– Other big items still to be resolved in the next week include legislative redistricting and passing a spending plan for the $1.8 billion in federal funds allocated to Mississippi by Congress under the American Rescue Plan.
With just three days to go before a final deadline to agree to a tax reform proposal in this legislative session, Gov. Tate Reeves has proposed a plan to fully eliminate the income tax within eight years.
Under Reeves’ proposal, Mississippi would create a flat tax of 3.5 percent in the first year of the plan. This would have the effect of reducing the tax rate on all income. Under Mississippi’s current tax structure, the second $5,000 of income is taxed at 4 percent and all income over $10,000 is taxed at 5 percent. Reducing the tax rate to 3.5 percent on all income over $5,000 would result in a tax cut of over $500 million next year.
Reeves’ plan then calls for reducing the tax rate by half a percentage point a year for seven years, resulting in the complete elimination of the income tax and making Mississippi the tenth state to operate without one.
“Mississippi has an extraordinary opportunity to advance transformational tax reform and the Governor’s plan boldly seizes upon this moment in time,” said Empower Mississippi President Russ Latino. “For two years we’ve debated and scrutinized the idea of eliminating the income tax. The proof is in the pudding, with states without income taxes dramatically outperforming the nation in economic and population growth. For two years, we’ve watched as revenue to government climbed while it became more expensive for Mississippi families to buy groceries. The path forward is clear and urgent. Now is the time.”
Reeves has long supported income tax elimination and outlined that goal in his Executive Budget Recommendation last fall and in the State of the State address in January. In his press conference today, he reiterated that income tax elimination remained a significant priority and he was prepared to use all tools at his disposal. It has been widely speculated that this could include the use of the governor’s authority to call special sessions once the regular legislative session has concluded.
This session, both chambers have been discussing tax relief, with the House adopting a plan to eliminate the income tax early in the session. It has since proposed multiple alternatives in an effort to negotiate with the Senate, including a proposal yesterday to start by cutting $100 million in taxes a year for the next six years.
In turn, the Senate has offered a plan that would reduce the top marginal rate from 5 percent to 4.6 percent over four years, and then eliminate the 4 percent tax bracket over the next four years. The Senate has also proposed some short-term relief that includes a temporary moratorium on the gas tax and one-time rebates but has been resistant to setting as a goal the complete repeal of the income tax.
The House and Senate have until Saturday to agree on a conference report to deliver tax reform this session. It is possible that the rules could be suspended if an agreement were reached at a later date or that the Governor would call a special session.
A new report details how states with the best individual tax climate are also growing at among the fastest clips in the nation. Unfortunately for Mississippi, the state doesn’t rank highly and it, not shockingly, continues to lose population.
The Tax Foundation individual income tax component of their 2022 State Business Tax Climate ranks Alaska, Florida, South Dakota, Wyoming, Nevada, Tennessee, Texas, Washington, New Hampshire, and Utah as the top states. This makes up the nine states that do not have an income tax, plus Utah, which has a single low tax rate.
Mississippi places 25th on the list, so middle of the pack. And as Mississippi has slowly eliminated the 3 percent tax bracket on less than $5,000 in taxable income, the state has moved up from number 28 four years ago.
As the report notes, “high marginal rates adversely affect labor output and investment, and can influence location decision-making, especially in an era of enhanced mobility, where it is easier for individuals to move without jeopardizing their current job, or without limiting the scope of their search for a new one.”
How did the top 10 states do in attracting people to move to their states? Pretty good.
State, with ranking
Population change
Alaska (1)
0.03%
Florida (1)
0.98%
South Dakota (1)
0.93%
Wyoming (1)
0.27%
Nevada (5)
0.96%
Tennessee (6)
0.8%
Texas (7)
1.06%
Washington (7)
0.26%
New Hampshire (9)
0.81%
Utah (10)
1.72%
One of the general criticisms of plans to eliminate Mississippi’s income tax is that it won’t necessarily bring people to Mississippi, which was one of just three states to lose population over the past decade. But that’s not what the data shows.
Small states like New Hampshire and South Dakota have no major cities like a Dallas or Nashville, but they grew at impressive rates last year.
People move to where opportunity exists. Across the board, that opportunity exists in low to no income tax states. At the same time, people are fleeing high tax states, even though those states are home to some of the biggest markets in the country, and the world. Americans are perfectly fine moving to states that spend considerably less, per capita, on government when weighing all issues.
This year, Mississippi has a unique opportunity for transformative reform that will lower tax rates for all and open the doors for investment and private capital. Because no state can experience continuous economic growth without population growth.
Independent pharmacists worry about their ability to survive
JACKSON, Miss. – Many local pharmacists in Mississippi are concerned about their ability to survive and serve their communities as large pharmacy benefit management (PBM) companies increase the cost of filling prescriptions. This conclusion is based on a survey of independent pharmacists conducted by State Auditor Shad White’s office.
“Last year, the state obtained a $55.5 million settlement resulting from our investigation into PBM practices,” said White. “It was the largest civil settlement resulting from a Mississippi State Auditor’s investigation ever. This report continues our look at the problems caused for Mississippians by these out-of-state corporate middlemen.”
In June 2021, Auditor White announced the conclusion of an investigation of Centene—one of the largest companies in the United States—and the PBM it operates as part of Mississippi’s Medicaid program. That investigation concluded with a $55.5 million civil settlement—one of the first of its kind in the country. The State Auditor’s office will continue to investigate whether PBMs have overcharged taxpayers or hurt government employees who are part of the state’s health insurance plan.
Survey results show local pharmacists are concerned about PBMs, which are corporations hired by health plans to help manage a health plan’s prescription drug costs. These companies are meant to negotiate price reductions with pharmaceutical companies and reimburse pharmacies after prescription medication has been provided to patients. But PBMs now claw back some of the money they pay to pharmacies with increasing regularity. Survey respondents overwhelmingly identified this PBM practice as one of the biggest reasons drug prices are skyrocketing.
The report shows over 90% of pharmacists described PBMs as “an obstacle between the patient and healthcare provider, largely responsible for increasing drug prices.” Survey results also indicated increased fees and costs imposed by doing business with PBMs will cause many pharmacists to scale back their support of community organizations and some to consider closing altogether.
JACKSON, Miss. – Today State Auditor Shad White announced that Tiffany Loftin, a former Rankin County Deputy Tax Collector, pleaded guilty to embezzlement in Rankin County Circuit Court. The case was prosecuted by District Attorney John K. “Bubba” Bramlett’s office in Judge Brad Mills’s courtroom. The guilty plea and sentencing were recorded on March 7th.
Loftin was arrested by Special Agents from the State Auditor’s office in November 2021. She embezzled nearly $6,000 from Rankin County residents as they paid cash for county trash collection fees. The case was turned over to the Auditor’s office by Rankin County Tax Collector Caroline Gilbert.
“The theft of taxpayer money is unacceptable, and we want it to be known that there are serious consequences for embezzlement in Mississippi,” said Auditor White. “I am thankful to the investigators and prosecutors for their hard work.”
Tiffany Loftin is now convicted of a felony offense and will not be able to handle public money again. Judge Mills’s sentencing order has been filed with the Rankin County Circuit Clerk’s office for public inspection.
Suspected fraud can be reported to the Auditor’s office online any time by clicking the red button at www.osa.ms.gov or via telephone during normal business hours at 1-(800)-321-1275.
