(The following is a press release from Lt. Gov. Tate Reeves' office.)
JACKSON – The Senate Finance Committee today approved Lt. Gov. Tate Reeves' Taxpayer Pay Raise Act of 2015 providing $400 million in tax relief to all Mississippians and encouraging economic growth across the state.
Senate 2839 is sponsored by Senate Finance Chairman Joey Fillingane, R-Sumrall. The Senate will consider the bill this week.
“The Taxpayer Pay Raise Act provides relief for every Mississippi income taxpayer, reduces taxes for businesses on Main Street and cuts the franchise tax paid by both small and large companies,” Lt. Gov. Reeves said. “This plan encourages capital investment and promotes long-term economic growth.”
The Taxpayer Pay Raise Act:
- Eliminates the 3 percent tax bracket levied on individual income,
- Reduces the overall tax burden on small business owners, and
- Removes the investment penalty, or franchise tax, on businesses' property and capital.
A Mississippi State University study showed Lt. Gov. Reeves' plan could grow the state's GDP by $282 million and add 3,514 jobs within 10 years. The plan has been praised by Americans for Tax Reform as an effective approach to growing the state's economy and putting more money in Mississippians' pockets.
Mississippi companies compete globally and reducing their tax burden at home would strengthen their competitive edge, said Jay Moon, chairman of the State Workforce Investment Board and President and CEO of the Mississippi Manufacturers Association. He testified before the Finance Committee last week. Also, eliminating the tax would place the state in a better position to attract new businesses.
“Now is the time for us to level the playing field,” Moon said. “A 10-year phase out of this tax would allow the general fund to absorb this reduction. It will create new jobs. It will create income. It will make us competitive. It will help existing businesses.”