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Dear Jack,
BOOM! Mississippi just scored a massive win — our House voted 88-24 to phase out the state income tax, and bill is now on its way to Governor Reeves’ desk!
This is what happens when conservatives dig in and fight for bold, principled policies. You helped make this possible.
Heroes eliminate the income tax!
Shoutouts to Governor Tate Reeves for his leadership on this, Speaker Jason White for prioritizing this, and Rep. Trey Lamar for crafting the plan.
The bill slashes the 4% flat rate by 0.25% yearly, hitting 3% by 2030. Thereafter, the rate will be reduced using a series of triggers. This means that as and when the state budget is in surplus after 2030, the rate will be reduced further until it is eliminated entirely.
Thanks to the Senate amendments, the plan does not now include any increase in the sales tax, and does include a cut in the tax on groceries. While the bill overall reduces tax by $330 million, it does increase the gas tax, essentially to pay for roads.
Given that the post 2030 cuts in the income tax depend on having a surplus, ensuring our politicians keep spending under control is going to be critical.
MCPP’s been pushing for full income tax elimination since last fall with a blizzard of articles, interviews and meetings all pushing for “full elimination with triggers”.
A priority: full elimination with triggers ….
We ruffled feathers when suggesting that the Senate’s initial counter plan was not the real deal. That’s how you move the dial.
Progressives who opposed this bill will no doubt be quick to tell us that there is something ‘unfair’ about the bill. Nonsense, using data from the Institute on Taxation and Economic Policy, I estimate that the 20 percent of households with the lowest income in our state contribute less than 2 percent of the total income tax bill. The 20 percent of households with the highest income pay about a third of the overall state income tax bill.
Mississippi has now managed to create an income tax that is flat, fair and falling! Great job to all who voted to make it happen!
Imagine what y’all might be able to do for school choice in 2026?
Have an awesome weekend!
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Warm regards,
Douglas Carswell
President & CEO
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