Mississippi tax revenues are running short, so obviously it’s time for a big tax cut.
Yeah, despite a projected $65 million revenue shortfall this year, Lt. Gov. Tate Reeves has pushed his massive $577 million tax cut proposal through the Mississippi Senate. Reeves argues his plan to phase out the corporate franchise tax, reduce individual and corporate income taxes, and give a tax break to small business owners will spur economic growth.
“We don’t need to grow the size of government; we need to grow the size of Mississippi’s economy,” Reeves told the Clarion-Ledger. “And we do that by allowing the taxpayers to keep their money to invest in their communities.”
Sounds nice, but evidence suggests such tax cuts don’t spur economic growth enough to make up for the tax cuts.