Mississippi House Approves Senate Tax Reform Plan

The Mississippi House has approved a Senate plan to eliminate state income tax, reduce the grocery tax from 7% to 5%, and increase the gas tax by nine cents over three years, while also introducing new hybrid retirement benefits for public employees. The bill, which passed with a 92-27 vote, aims to end the tax on labor but has been met with a motion to reconsider, highlighting ongoing negotiations, especially regarding retirement system reforms. Key differences between the House and Senate plans include the Senate's introduction of economic triggers for future tax cuts and a set of PERS reforms, which the House plan does not directly address. Despite legislative advancements, some lawmakers, like Rep. John Hines, have expressed concern over potential negative impacts on public service funding. Both the House and Senate continue to negotiate unresolved issues, with further discussions expected. The bill's passage marks a significant step in Mississippi's tax reform efforts, though consensus on certain elements remains elusive.