Income tax; reduce and phase out rate on taxable income of individuals above $10,000.
If enacted, the bill will significantly alter Mississippi's tax landscape, potentially affecting state revenue. Tax rates would be progressively lowered: for instance, after 2028, no tax will apply to income over $10,000, fundamentally changing the financial obligations of individuals earning above this threshold. Such changes could encourage spending and economic activity at lower income levels and possibly attract new residents or businesses seeking lower taxes.
Senate Bill 2459 aims to amend Section 27-7-5 of the Mississippi Code of 1972 to reduce and phase out the state income tax on individuals' taxable income exceeding $10,000. Starting from July 1, 2023, the bill proposes to eliminate income tax rates gradually, beginning with taxable income brackets set above $10,000. The fundamental goal is to increase disposable income for individuals through systematic tax relief over the coming years.
Discussion surrounding SB 2459 may highlight notable points of contention, particularly regarding the balance between reducing tax burdens and maintaining adequate state revenue for public services. Critics may argue that while individuals benefit from reduced taxes, the loss of revenue could impact state budgets for health care, education, and infrastructure. Supporters, on the other hand, may emphasize individual financial freedom and the potential for economic growth that stems from increased disposable income.