HomeMoneyMississippi Proposal to Cut Income Tax, and Slash Grocery Taxes

Mississippi Proposal to Cut Income Tax, and Slash Grocery Taxes

As part of a proposal being processed in the Mississippi House, the state income tax will be phased out, the grocery tax will be reduced, and many other items will have sales taxes increased.

According to Magnoliastatelive, House Bill 531, the first version of this proposal, was passed on Tuesday by the House Ways and Means Committee.

It has moved to the full House for further debate.

The current lieutenant governor of Mississippi, Delbert Hosemann, a Republican, said he wanted some type of tax cut this year, but he didn’t specify the kind.

Speaker Philip Gunn, a Republican, had also said he would like to eliminate the income tax this season.

If successful, Mississippi will become more competitive with income-tax-free states such as Texas, Florida, and Tennessee with the change or proposal.

Read More: Why Are Food Shortages Persistent in 2022?

A 4% grocery tax would replace the 7% tax currently imposed. Beginning this July, the tax would be reduced by 4% annually.

In addition, several taxes would be increased from 7% to 8.5%.

These taxes include general sales tax, alcohol tax, and tax on digital products, such as music, games, and cellphone ring tones.

Suppose the general sales tax were increased by the proposed amount, for example, a $100 purchase of clothing would be taxed $8.50 instead of $7.

Both in-person and online purchases would be subject to this increased tax amount.

NATE GARTRELLhttps://theeastcountygazette.com/
NATE GARTRELL is an author at TheEastCountyGazette.com, a publication in the East County region of San Diego County. He has been writing for the Gazette since 2012 and writes on many different topics including politics, business, health care and more.
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