Bryant, Reeves and other GOP legislative leaders say dumping the franchise tax will result in more money to spend and eventually increase state revenue collections.
State Sen. David Blount, a Jackson Democrat, gave a much different assessment in an interview this week. “State tax revenue this year is not meeting projections,” he said. “We could be faced with mid-year budget cuts.”
Those cuts would come in a year that Mississippians are counting on new spending on transportation, mental health and education. Those priorities would end up in the “unmet needs” file, Blount said….
…Taxing businesses on the balances on their books makes the state uncompetitive for businesses “and puts us at an economic disadvantage,” said Filingane, an attorney.
“It is really an outdated form of tax,” he added. “I think Republicans and Democrats want to get rid of it.”