Part of the revenue crunch is from $350 million in tax credits and breaks passed over the last four years. For the coming year, the phased reduction of the business inventory tax is reducing revenue by $126 million.
Mississippi has cut taxes, but until last week, it hasn’t cut spending correspondingly.
We’ve seen some neighbor states hit fiscal crisis by continuing to cut taxes as growth stays flat.
Frierson recently said he’s leery of any tax cuts without corresponding spending cuts.
“You can’t say we are going to cut taxes and growth will cover it,” Frierson said. “That’s irresponsible.”