I do not understand the cut to or eventual elimination of the state income tax. I was in the tax business at least part time but also full time for the last almost 40 years. I was never aware of anyone being overburdened by state income tax. Tax planning always centered on federal taxes. I doubt very seriously any industry ever decided not to locate here because of the state income tax. Poor roads, poverty, second rate public education, racist leadership, etc., yes. But not state income tax. I have it on good authority that our state flag finally got changed because Amazon said they would not locate here with that flag still flying. They said naught about the income tax. So despite promises to let the people decide, the executive and legislative branches moved into the 21st century. While it may have reflected "heritage," money won over.
I even recall the sales tax when it was 5%. I think it was increased twice to its now 7% level, and one of those increases was touted as "temporary" - until we got out of our tight spot. Well, no one believed that, but I can't imagine anyone believed that a so-called "temporary" increase would remain while a non-burdensome income tax was cut or eliminated.
Cutting or eliminating the state income tax benefits people whose lifestyles really won't change much for the better. Cutting or eliminating the sales tax on groceries would benefit them, too, also likely not a life changing amount, but it would benefit those whose incomes are below the filing requirement, and likely to an extent they would notice. Might eat better. As long as sales taxes on other things did not go up, that is, either state-wide or by local option. And I have heard that has been trotted out as a safety net for cities who see their sales tax revenue drop "too much." "Just do a local option increase on everything else."
We have so many needs, including but not limited to roads, highway, and bridges; fully funding PERS; improving public education; improvements to the capital city; and job training. It is beyond ridiculous to eliminate a revenue source OTHER THAN sales tax on food in such a situation.
The capital city is a reflection of the state. Our current governor has been quoted in speeches made outside of Jackson that "it's a good day to be away from Jackson. ANY day is a good day to be away from Jackson." It always kills, too. Comedians would die to have a line like that.
And he's not the only elected official to do that. He's just the most recent in a long line of them.
But it's sad. Getting rid of the income tax will NOT attract industry in and of itself. Those other things should be fixed first, and I think they WOULD.
Same on the federal level. The current adminstration says its trying to balance the budget and reduce the deficit and by doing that, reduce the debt. No it's not. It's trying to slash outgo willy-nilly to pay for tax breaks to oligarchs and would-be oligarchs. The deficit and the debt will increase.
I fear our "Make America Great Again" movement is like unto Mao Zhe Dong's "Great Leap Forward." If you don't know how that turned out, look it up.
(For full disclosure, I no longer pay income tax because my income other than retirement income is below the filing requirement. But on that subject, I think retirement income SHOULD be taxed just like it once was. There was an exemption for some specified amount, but retirement income above that was subject to state income tax. Except social security, which has never been taxed in Mississippi, but is in some states. And I doubt many flee those states just because of it, either.)
Glynn Kegley is a Northsider. In retirement, he does what he pleases, including operating a think tank.
