Today, the Mississippi House Republican Caucus announced a $1.38 billion individual income tax cut proposal. The income tax cut in House Bill 1629 (HB1629) will occur over a 15-year period beginning in Fiscal Year 2017 (FY17) and will take place only if there is three percent revenue growth in each fiscal year.
Currently, Mississippians pay a three percent income tax on their first $5,000 of income, four percent on the next $5,000 of income and five percent on income over $10,000. Under the House Republican Caucus’ plan, the three percent income tax would be eliminated by 2019, the four percent income tax by 2022 and the five percent income tax by 2030.
“If we are going to do a tax cut, we want it to be real, substantial and make significant impact on the lives of those who are paying the tax,” said Speaker of the House Philip Gunn. “With this tax cut becoming law, a family making $30,000 a year will be able to keep $1,350 more of their hard-earned dollar. That’s a 4.5 percent raise. Over the course of these next 15 years, we will not only see every Mississippian be able to keep more of their hard-earned money, but we will also see the economic growth and prosperity that comes with a significant tax reduction.”
Rep. Brad Mayo, author of HB1629, also believes this measure will give Mississippians a long-needed, meaningful tax relief.
“Mississippians will be able to keep more of their paychecks and spend it toward their priorities,” said Rep. Mayo. “We have worked to create efficiencies, reduce waste and improve the delivery of government. These are fruits of those labors. But, this proposal will not impact this year’s budget.”
HB1629 passed the House Ways and Means Committee earlier this morning.
“I am proud that we are looking to help all Mississippians in eliminating the income tax,” said House Ways and Means Chairman Jeff Smith. “Allowing our citizens to keep more of their hard-earned money rather than paying it to the government is the right thing to do.”
Key Points of the Proposal:
• 15 Year – $1,380,360,533 individual income tax elimination
• 3% bracket eliminated by 2019
• 4% bracket eliminated by 2022
• 5% bracket eliminated by 2030
• 3% revenue growth required
• Mississippi family that makes $30,000 a year – $1,350 Raise
• Mississippi family that makes $50,000 a year – $2,350 Raise
• Mississippi family that makes $70,000 a year – $3,350 Raise
MS House Press Release