BILL CRAWFORD: Tax needs vs. tax cuts bedevil legislators

Quite frankly, it appears that to keep the tax cuts already promised to businesses and individuals, legislators will have to substantially cut state spending and/or find new sources of revenue.

With regard to new sources, Alabama is looking at a state lottery. Mississippi already has constitutional authority for a lottery, but powerful casino interests keep it off the table.

Most states, and the IRS, tax retirement income (with some exclusions), but not Mississippi. Thus, in addition to pensions, any income that passes through an IRA, 401(k) or other tax deferral vehicle, forever avoids Mississippi income taxes (another plus for high income individuals).

Whatever, our legislators’ studies won’t reveal any easy answers.

Daily Journal
8/7/16