The Northeast Mississippi Daily Journal, 8/28/8

Gov. Haley Barbour’s tax study commission, in its final report, is recommending more reductions in the state income tax or a cut in the grocery tax in addition to its earlier proposals.

The 38-member commission met Wednesday to put the final touches on the report that will be submitted to the governor and the Legislature in the coming weeks.

In its final vote Wednesday, the members recommended that the extra state revenue generated by their proposals be used to reduce the grocery tax or further cut the income tax.

The draft final report released earlier this month made no mention of reducing the 7 percent tax on groceries, which is the highest state-imposed tax of its kind in the nation. And earlier Wednesday, commission members had voted down a reduction in the grocery tax.

But after it was determined that the total recommendations in the report would result in an estimated net increase in revenue of $100 million, Chairman Leland Speed, a Jackson businessman, asked if the members wanted to recommend what to do with the funds.