A potential shortcut to abolishing Mississippi’s income tax could be compromised due to mathematical errors in the state’s tax-reform plan. Senate Bill 3095, a vehicle for modifications to House Bill 1, was intended to serve as a fix for these issues. However, with the bill already passed by both chambers and sent to Governor Tate Reeves for signature, it appears that amendments will not be made.
The original Senate plan called for gradual abolition of the income tax, with an annual reduction in rate until it reached 3% in 2030. But a critical amendment added in the House version incorrectly lowered the threshold for when the state could begin reducing the tax rate from $407 million to just $3.45 million.
This means that even if the state’s revenue surplus exceeds this lower amount, it would not trigger the reduction of the income tax rate as intended. This oversight has raised concerns among lawmakers and critics about the lack of a plan for making up for lost revenue at a time when federal funding is being cut.
House Democratic Caucus Chairman Rep. Robert Johnson criticized Republican leadership for allowing the errors to remain in the bill, stating that it was irresponsible and dishonest to eliminate the income tax without a plan for covering the revenue shortfall. Meanwhile, Governor Reeves expressed support for the bill’s signing by March 31, but also took aim at journalists who highlighted the mathematical errors in the legislation.
Source: https://www.mississippifreepress.org/math-errors-in-mississippis-income-tax-elimination-plan-could-mean-state-abolishes-tax-sooner