A bill to phase out the state income tax and adjust grocery and sales taxes has passed the Mississippi House with a bipartisan vote of 88-24. The plan reduces the income tax rate from 4% to 3% next year and aims for complete elimination in ten years.
It introduces a new 5% gasoline tax to fund transportation, expected to generate $400 million annually. Some lawmakers express concerns about the plan’s impact on poorer citizens and the need for careful tax restructuring. Republican Mississippi Gov. Tate Reeves says eliminating state income tax is his administration’s top priority.