Purvis, Miss. (WHLT) – Positioning Mississippi’s economy to be competitive for the future is a top concern facing the Legislature.
Income taxes made up about a third of the state’s $6 billion in tax revenue for Fiscal 2022. The Legislature had previously eliminated the 3-percent income tax bracket on the first $5,000 of taxable income.
The Senate and the House still haven’t found common ground on taxes. The Senate proposed a 4-percent bracket and an overall flat rate tax after four years, and the House proposed to eliminate income tax.
They want to increase non-grocery sales taxes by one and a half percent. Lieutenant Governor Delbert Hosemann (R-Miss.) said what the House is proposing is almost impossible.
Mississippi Senate proposes $446M Tax Relief Act
“The Senate proposal allows us to continue to grow in Mississippi, take care of education, infrastructure, police and trooper salaries; all the things we have to do without jeopardizing that by going to some total elimination,” said Hosemann.
The Senate proposed an increase to teacher salaries by more than $250,000,000. Hosemann said while that does bring the state closer to national averages, it’s not what’s most important.
“The most important thing is that we have a tiered system that will encourage teachers to stay. You’ll see additional bonuses coming in when teachers reach their third, fifth and tenth year,” he said.
Hosemann said incentives for teachers will increase, and he said the Senate will roll out pro-education initiatives starting with year-round school.