Mississippi House Bill HB224

Mississippi 2024 Regular Session

• Introduced: 1/17/24
• Refer: 1/17/24
• Failed: 3/27/24

Caption

Income tax; exclude overtime compensation from gross income.

Impact

If passed, HB 224 will result in significant changes to the way overtime income is treated under Mississippi's tax law. This amendment seeks to empower workers by allowing them to retain more of their hard-earned money without it being subjected to state income tax. Consequently, this could encourage more individuals to work overtime, potentially benefiting employers and the economy as a whole by increasing productivity within the workforce.

Summary

House Bill 224 seeks to amend Section 27-7-15 of the Mississippi Code of 1972 by explicitly excluding overtime compensation from the definition of 'gross income' for state income tax purposes. This legislative change is intended to alleviate the tax burden on individuals who earn overtime pay, ensuring that such earnings are not considered when calculating their taxable income. By doing so, the bill aims to provide financial relief to workers who often take on extra hours to meet their financial needs.

Contention

One notable point of contention surrounding HB 224 is the potential loss of tax revenue for the state government due to the exemption of overtime pay from income taxes. Critics may argue that while the bill aims to support workers, it could undermine state funding for essential services that rely on tax income. Legislators may debate the balance between providing tax relief to employees and maintaining adequate funding for public programs, weighing the immediate benefits to taxpayers against the broader implications for the state budget.