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Deep red state makes major announcement about income tax: ‘We plant our flag’
News

Deep red state makes major announcement about income tax: ‘We plant our flag’

Jimmie Dempsey
Last updated: March 27, 2025 10:45 pm
Jimmie Dempsey Published March 27, 2025
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FIRST ON FOX: Mississippi taxpayers will get significant relief with the incremental elimination of the state’s income tax.

Republican Gov. Tate Reeves is signing legislation into law Thursday evening that will lower that tax from 4.7% to nothing over the next few years, including getting it down to 3% by 2030, then eventually down to zero.

House Bill 1, the “Build Up Mississippi Act,” also slashes the grocery tax to 5% from 7%.

REPUBLICAN GOVERNOR SAYS DOGE IS RESTORING OPTIMISM IN FISCAL RESPONSIBILITY

“I am proud to sign into law a complete elimination of the individual income tax in the state of Mississippi,” Reeves said in a statement. 

“Let me say that again: Mississippi will no longer tax the work, the earnings or the ambition of its people. The legislation I’m signing today puts us in a rare class of elite, competitive states. There are only a handful of states in the country that do not tax income. Today, Mississippi joins their ranks, and, in doing so, we plant our flag.”

Proponents of the legislation believe it will help boost economic development in the state. Only nine states do not charge an individual income tax: Tennessee, Florida, South Dakota, New Hampshire, Florida, Nevada, Wyoming, Alaska and Washington.

ICE ARRESTS 16 ILLEGAL MIGRANTS CAUGHT FLEEING OUT BACK OF MISSISSIPPI BUSINESS DURING RAID

tax gear

“This is more than a policy victory. This is a transformation. And it’s a transformation that I have believed in, fought for and worked toward for many years,” the governor stated.

“Generations from now, when our kids are raising families of their own in a stronger, more prosperous Mississippi, they will look back on this moment and say, ‘This is when we took our shot.’ To the people of Mississippi, you are the real winners today.”

MISSISSIPPI CITY DROPS LIBEL LAWSUIT AGAINST LOCAL PAPER FORCED TO REMOVE EDITORIAL CRITICAL OF OFFICIALS

Mississippi governor's mansion

The state legislature had disagreements on how to best approach tax policy, and a typo considered a happy accident by proponents paved the way for a faster schedule on how soon the cuts can be made, according to The Clarion Ledger. The outlet reported that some Democrats are opposed to the legislation, citing potential concerns about its effect on the public sector.

The new policy comes as major tax changes are being proposed at the federal level. The Tax Cuts and Jobs Act of 2017 expires this year, and President Donald Trump has pledged to extend it. He is also hoping to make good on a promise to scrap the federal income tax on tipped wages and overtime pay. 

Read the full article here

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