Mississippi governor advocates income tax cut amid opposition myths

Mississippi Governor Tate Reeves is advocating for the elimination of the state’s income tax, arguing that it is essential for the state's economic growth. He addressed a gathering of business leaders and legislators in Flowood, emphasizing that the state is already in the process of reducing its personal income tax, with plans to lower the top rate to 4% in two years. This initiative is part of a broader strategy to make Mississippi more competitive with states like Florida, Tennessee, and Texas, which do not impose an income tax. Reeves dismissed criticisms from opponents who claim that tax cuts could hinder job creation and public education funding. He pointed to recent job announcements, including Amazon Web Services' plans to build data centers in the state, as evidence that tax reductions can stimulate economic activity. Additionally, he highlighted improvements in the state's high school graduation rates and the presence of budget surpluses as indicators of fiscal health. Despite the push for tax cuts, some Republican legislators expressed caution, citing the need to maintain funding for essential services like the Public Employees Retirement System and public infrastructure. They referenced Kansas's experience with significant tax cuts that led to revenue shortfalls and subsequent reversals. In contrast, other Republican leaders, like House Ways and Means Committee Chairman Trey Lamar, support a bold approach to tax reform, suggesting that the state should enact a significant phase-out of the income tax to benefit taxpayers and attract attention to Mississippi's economic potential.