Mississippi News
Mississippi among states where sales tax is largest revenue source
Study: Mississippi among minority of states most dependent on sales tax
The individual income tax, which House Speaker Philip Gunn, Gov. Tate Reeves and others want to eliminate in Mississippi, is the largest source of revenue in 33 states.
Mississippi is among 14 states where sales tax is the largest source of revenue, according to a recent report by the Pew Charitable Trust, which researches and offers assistance to governmental entities on various policy issues.
Recent reports by Pew reveal that most states, including Mississippi, are experiencing significant increases in revenue collections and those increases are fueled by strong collections of most general taxes, including the income tax and the sales tax.
“Tax revenue is one factor that helps explain recent widespread state budget surpluses,” according to a report from Pew.
Currently, according to data compiled by Pew, tax collections are robust both in states that rely primarily on the sales tax and those that are dependent on the income tax.
Mississippi is no exception. With one month of data still to collect before the fiscal year ends on June 30, tax collections in Mississippi are nearly $1.3 billion above the official estimate. The official estimate represents the amount of money legislative leaders projected would be available during the session to build a budget for the upcoming fiscal year beginning July 1. Money above the official estimate goes into reserve funds.
During the 2022 session, the Legislature appropriated $951.1 million in reserve funds. The bulk of that funding went for a litany of one-time projects – such as on government buildings repair, renovation and construction, and on tourism projects across the state.
Based on revenue collections through May, the Legislature also will have a substantial amount of reserve funds for the 2023 session.
In addition to being almost $1.3 billion above the official estimate, tax collections also are $615 million or 10.25% above the amount collected during the first 11 month of the previous fiscal year. Through 11 months of the fiscal year, the personal income tax collections are up $276.7 million or 13.8% while the general sales tax collections are up $291.4 million or 14.4%. Other elements of the sales tax, such as the tax levied on out of state purchases, also are up.
In the coming years, Mississippi will be even more reliant on the sales tax. During the 2022 session the Legislature reduced the state income tax – beginning in the 2023 calendar year – by eliminating the state's 4% tax bracket on people's first $5,000 of taxable income. The 5% tax on remaining income will drop to 4.7% for 2023, then 4.4% for 2025 and 4% starting in 2026. The changes will reduce state income tax revenue by $525 million when fully enacted in 2026.
Both Gunn and Reeves have expressed support for fully eliminating the income tax in the coming years.
“We have talked a lot about moving toward a full elimination of the income tax. I believe that is still the goal. We want to make sure we continue that fight,” Gunn said during the 2022 session earlier this year.
Such action would further position Mississippi among the minority of states more dependent on the sales tax for revenue than the income tax. The sales tax is viewed as a regressive tax that places a larger tax burden on low-income residents than does the income tax.
According to research by Pew, Mississippi currently garners 45.2% of its revenue from its general sales tax, which is 7% on most retail items. This would also include the excise tax levied on out-of-state purchases, primarily those made via the internet. The personal income tax accounts for 26.9% of the state's revenue, according to Pew.
But that number will decline in the coming years as the income tax is reduced, with the hope by some, of eventually eliminating the tax.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi News
House Speaker Mike Johnson appears at Mississippi event
SUMMARY: US Speaker of the House Mike Johnson visited Mississippi and spoke at Jackson Preparatory School during an event hosted by NACLC. While reporters were unable to ask him questions, student Sophie Slade asked him about balancing foreign and domestic policy priorities. Johnson emphasized the importance of America first but not America only, and expressed concern about projecting weakness in foreign policy. He also discussed issues at the southern border and his recent speech at Columbia University about the protests following the war between Israel and Hamas. Additionally, officials announced that the US is expected to provide $6 billion to fund long-term weapons contracts for Ukraine.
The post House Speaker Mike Johnson appears at Mississippi event appeared first on www.wjtv.com
Mississippi News
Community stands behind mother who lost her daughter tragically
SUMMARY: Sonya Baldwin, a longtime Hardee's employee in Columbus, Mississippi, recently lost her daughter Ashanti Jade Turner. Despite the tragedy, Baldwin has been overwhelmed by the outpouring of support from her community. Turner's granddaughter spoke about her close relationship with her aunt, emphasizing that her legacy will live on. Chick-fil-A in Columbus will be holding a candlelight vigil in Jade's memory. Baldwin expressed gratitude for the support during this difficult time and emphasized the importance of remembering her daughter. The community's response has been a source of comfort for the grieving family.
The post Community stands behind mother who lost her daughter tragically appeared first on www.wcbi.com
Mississippi News
Weekend warm up
SUMMARY: The weather in Columbus, Mississippi is expected to warm up as a stationary front that has been keeping moisture in the area is set to move out. Clouds will linger Thursday night, maintaining mild temperatures in the lower 60s. Friday will see a mix of sunshine and clouds, with temperatures reaching the 80s. The weekend will be warm with afternoon highs in the middle 80s and a chance of isolated showers. Next week will bring another chance of showers and thunderstorms with temperatures staying in the 80s. Light rain chances will persist throughout the week with highs ranging from the upper 70s to middle 80s.
The post Weekend warm up appeared first on www.wcbi.com
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