Branning for eliminating income tax

State Sen. Jenifer B. Branning likes the idea of eliminating the state income tax.

A group of state lawmakers met at the Capitol last week to hold hearings on the possibility of eliminating the state income tax. 

“I definitely think it is a conversation we need to have,” said Branning, a Republican from Philadelphia representing District 18. I know we received a lot of good information from the hearings.”

Branning was unable to attend committee hearings in person but was able to view them on YouTube and she is glad the Legislature is studying the issue.

“I am supportive of the idea,” Branning said. “I don’t want to do any tax swap.”

Branning said she supports the idea of eliminating the state’s income tax, because it will keep more money in Mississippians' pockets.

Speaker of the House Philip Gunn is leading the effort after a measure to eliminate the state’s income tax passed the House last session but failed to make it out of a Senate committee.

Gunn, a Republican representing Hinds and Madison counties, said he believes the House measure is a sound plan and he supports the Senate’s decision to study the issue before the next session.

“That’s why the Senate and House held an in-depth two-day joint hearing to hear from economists and tax policy experts,” Gunn said. “The purpose was to get a clear-eyed look at the data and expert analysis and take their advice seriously.”

Lawmakers are in the study phase and no action can be taken on eliminating the state's income tax until the full Legislature is in session, which barring any special sessions would be January.

Gov. Tate Reeves has pushed eliminating the state income tax.

“I’m also very glad that the Lt. Governor, Speaker, and I all agree that the income tax should be eliminated, and that doing so best positions Mississippi for long-term success,” Reeves said. “I hope that once the hearings are over, the Legislature will realize that eliminating Mississippi’s income tax is needed and reducing the tax burden on Mississippians across the board is the best way to ensure our state’s economic prosperity.”

Reeves said he does not support eliminating the state’s income tax in exchange for another form of tax.

“I hope that once the hearings are over, the Legislature will realize that the best way forward is to not swap the income tax for increases in sales taxes, agriculture taxes and other taxes,” Reeves said. “I’m opposed to robbing Peter to pay Paul. In fact, I want Peter and Paul to have more money in their pocket. I’ve been in contact with small businesses throughout Mississippi — including in the manufacturing and agricultural industries — outside think-tanks, and other stakeholders. Based on my conversations with them, it’s clear — the consensus is that eliminating, not swapping the tax burden, is the way to go.”

Reeves said he believes Mississippi is in a good financial position now to eliminate the state’s income tax. 

“Mississippi is in the best fiscal and financial shape in the state’s history, thanks in large part to Mississippians’ willingness to go back to work despite a global pandemic,” Reeves said. “Thanks to them, Mississippi ended the year $1 billion over revenue estimates.”

Reeves said that when he was the state’s Lt. Governor he proposed the largest tax cut in the state’s history.

“We were able to eliminate the 3% tax bracket without increasing taxes in other areas,” Reeves said. “We did it before, and it is my firm belief that we can do it again.”

Democratic Sen. Hob Bryan of Amory told the Associated Press last week that he opposes eliminating the income tax because of the state's infrastructure problems, which include poor roads and bridges, water and sewer problems and lack of internet access.

“Do you know a single human being on the face of the earth that would move to Mississippi if only we didn't have a state income tax?” the AP reported Bryan saying. “It's laughable on its face.”

During the joint Tax Study Committee hearings held Aug. 25 and 26, tax economists from the University of Mississippi and other tax reform proponents, including Grover Norquist, founder and president of Americans for Tax Reform, and Russ Latino, president of Empower Mississippi, spoke.

Norquist told the group of lawmakers that eliminating the state income tax is a good incentive to bring people and businesses to the state.

“There is a movement now that is moving state by state,” Norquist told members of the joint Tax Study Commission on Aug. 26. “Utah is getting in on the conversation about moving down toward zero. Even some of the blue states are talking about inching their extremely high-income taxes down and certainly not increasing them and they are explicitly saying because people will leave.”

Norquist presented data that he said showed states with lower or no income taxes have more people moving into them while states with higher income tax rates have people moving away from them.

“Pretty soon everyone is going to be a no-tax state, so the question for Mississippi is are you going to be an early adopter or are you going to be catching up?” Norquist said. “California and New York are going to be catching up.”

Norquist said eliminating state income tax tells people you support their success.

“This is not a state consumed with envy," Norquist said of the message no income tax sends. "This is not a state that will celebrate your success when you come here. We are glad you are here. We are glad you’re successful. We won’t decide, ‘You’ve made more money than the guy down the street so I think we will take something from you.' People tend to move away from neighborhoods where that exists in history. The early adaptors will have the advantage over the people who decide to start this five, six and seven years from now.”

The Associated Press reports that Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not charge any state income tax.

"Individual income taxes made up 34% of Mississippi's state tax revenue during the state budget year that ended June 30, according to the state Department of Revenue," the AP reports. "That was about $2.2 billion from individual income taxes in the nearly $6.6 billion the state collected for its general fund."