Democrats concerned about impact of raising taxes on local populations

The Mississippi House of Representatives passed a $1.1 billion tax cut bill on Thursday after nearly two hours of debate, sending it on to the Senate where leadership is considering a starkly different approach, and thus is unlikely to pass the House version.

House leadership after the vote said there really isn’t much room for compromise, but there is hope that because Senate leadership wants to cut taxes, both sides can hopefully come to an agreement.

“I’m encouraged by the fact that that (Lt. Gov. Delbert Hosemann) is talking about cutting taxes, I think that’s a good place to start, as opposed to somebody who wouldn’t,” House Speaker Jason White,R-West, said. “Now maybe we’ll figure out the best way to get there in this process.”

House Bill No. 1, dubbed the Build Up Mississippi Act, passed with 88 votes. Of them, at least nine were Democrats and two were independents. There were 24 no votes, consisting only of Democrats.

“It’s bipartisan to some extent. And you saw a lot of people, maybe they didn’t vote yes, they didn’t vote no, either,” White told reporters after the vote. “I’m proud of my Republicans for speaking as one, as a caucus, that this is important to them and to their constituency. It’s a good, strong vote for us, and it’ll be a strong position for me as speaker to advocate for its passage and advancement on the other end of the building.”

See Senate approach on taxes: Mississippi Legislature begins 2025 Session. See leaders’ goals for this year

Sex workers tax exception: Historic MS tax cut would end tax on income, unless you work in porn or are a sex worker

If passes both chambers as is, the bill would:

• Eliminate $2.2 billion in income tax revenues over 10 years. The cut would become active once the state’s income tax is phased down to 4% by Fiscal Year 2027.
• Reduce state sales tax on groceries from 7% to 2.5% while adjusting tax structure on other items to offset the costs.
• Removes state sales tax diversions to municipalities and replaces it with a local-option 1.5% local sales tax. Cities will have the option to opt-out of this tax structure. Lamar said this will result in local tax revenue increases across the state.
• Sales tax collected at 1.5% in counties will be diverted to road and bridge infrastructure needs at the county level.
• Add a fuel sales tax of 5% on retail sale of gasoline. This would be in addition to the state fuel tax already imposed. Lamar said this would add $400 million to the state budget, and all of those additional funds would go to the Mississippi Department of Transportation for road and bridge projects.
• The $80 million that was going to MDOT per year from gambling revenue will now be headed toward the Public Employee Retirement Systems of Mississippi to address a $25 billion deficit in future retirement benefits.
• Establishes a “budget stabilization fund” that will act as a secondary rainy-day fund.

“This is all about 10 years later, we’re finally at a place where we can tell the hard-working people of Mississippi that we are going to eliminate the tax on work for you, your children, your grandchildren and all future generations,” House Ways and Means Chairman and bill sponsor Trey Lamar, R-Senatobia, said.

The bill, however, will not include an income tax cut for sex workers in Mississippi, who will be taxed at 5% of their income once the tax cut is fully phased in.

Before voting on the bill, several Democrats questioned whether the tax package would actually end up costing the state more money down the road and causing revenue shortfalls. They also questioned whether moving to a consumption-based economy would result in poorer people paying more money out of pockets because of increases in costs due to the new gas tax and sales tax model.

Others pointed out growing needs to repair and replace existing government structures such as schools and offices.

“Has any thought been given, or was any thought given about not only for schools, but the age of infrastructure of all of the state buildings across the state?” asked Rep. Bryant Clark, D-Lexington.

Rep. Omeria Scott, D-Laurel, offered an amendment to just cut the sales tax immediately, calling on Republicans to not wait for the end of the 10-year phase-in of the tax cuts as proposed in the bill, but it was defeated.

After 2016 when the state passed several tax cuts, revenue shortfalls ensued, causing former Gov. Phil Bryant to make emergency budget cuts several times. Numerous county Mississippi State Department of Health County offices closed and state grant matches for federally funded infrastructure projects were put at risk.

Under the House plan, sales taxes excluding groceries would essentially amount to 8.5%, which still puts Mississippi at a lower sales tax than its neighbors.

House tax plan explained: MS House set to take up historic $1.1 billion tax cut this week. How it would affect you?

House Speaker Jason White told reporters after the vote that he is optimistic about working with the Senate leadership, but he said he does not intend to compromise on fully eliminating the income tax or establishing infrastructure revenue streams.

Grant McLaughlin covers state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335.

The Mississippi chapter of the ACLU has submitted a proposal to redraw the state’s legislative districts that creates two new majority-Black Senate districts and pits two pairs of incumbent senators against one another. 

The plan, submitted on behalf of Black residents and the state branch of the NAACP, creates a new majority-Black Senate district in north Mississippi’s DeSoto County and in south Mississippi’s Hattiesburg area. 

“Any proposed maps that attempt to meet the court order by diluting or undermining existing Black-majority voting districts in other parts of the state will fail the requirements set by the court and federal law,” Mississippi ACLU Director Jarvis Dortch said in a statement. 

The plan tweaks the boundaries of the existing 52 Senate districts. 

To accommodate new majority-Black districts, the plan places Republican Sens. Kevin Blackwell and David Parker, both of DeSoto County, in the same district. The same scenario would happen to Republican Sens. John Polk and Chris Johnson of Hattiesburg. 

Neither the Senate nor the House has released a redistricting proposal, and the federal courts have not yet ruled on a submitted plan. 

Senate Rules Committee Chairman Dean Kirby, a Republican from Pearl, said on Mississippi Today’s “The Other Side” podcast that Senate leaders were “very close” to releasing a redistricting plan.  

For the House, the ACLU’s plan would make the District 22 seat in Chickasaw County currently held by Republican Rep. Jon Lancaster of Houston, who is white, a majority-Black voter district. This portion of the plan does not put any incumbents against each other. 

House Speaker Jason White, a Republican from West, said he did not know when the House leadership planned to release its redistricting plan but that it was one of his priorities and he plans to “get it done.” 

The ACLU proposal stems from a successful legal challenge the organization filed against state officials that argued the legislative districts drawn in 2022 by the state Legislature diluted Black voting strength. 

LISTEN: Podcast: ‘Deja vu all over again’: Senate President Protem Dean Kirby outlines 2025 issues

A federal three-judge panel agreed, ordering the state to create more majority-Black districts and conduct special elections within the impacted districts this year. 

Only a couple of legislative districts will significantly change, but the Legislature will also have to tweak many districts to accommodate new maps. State officials in court filings have argued that the redrawing would affect a quarter of the state’s 174 legislative districts.

While the court ultimately placed the burden on the Legislature for creating a new map that satisfies federal voting laws, it ordered that the ACLU and the plaintiffs should be ready with an alternative plan if they object to the state’s plan that must be adopted by the conclusion of the 2025 session, which ends in the spring.

JACKSON, Miss. (WLBT) – A Mississippian could soon take a top health-related spot in the Trump administration.

Drew Snyder left his post as Director of Mississippi’s Division of Medicaid at the end of October. Now, a Politico report indicates he may be waiting in the wings to assume the role of leading the federal program.

The news comes just as lawmakers are starting the new legislative session which leaders have said will include another attempt at extending Medicaid coverage to more Mississippians. Senator Brice Wiggins praised Snyder’s work at the state level.

“If he does get that position, I think it would be a boon for Mississippi,” noted Wiggins.

It’s been no secret that the next steps on Medicaid legislation this session are hinging on what the feds say under the new administration.

“All bets are off until we see which direction they want to go,” said Speaker Jason White ahead of the session.

The Governor and Speaker are praising Snyder but not going into any detail on whether they knew about the potential appointment. But leaders have all referenced in the last month that they’re starting conversations.

“I’m having the same conversations with people that will be in those positions to make sure that whatever we decide on will be approved at the national level,” said Lt. Governor Delbert Hosemann in December. “And we’re getting some guidance on those.”

Wiggins was a conferee on last year’s bill that didn’t make it across the finish line. We asked how a Mississippian at the top of the federal program could impact this year’s efforts.

“I certainly think the amount of phone calls and the amount of persuasion would be lessened because he’s heard all of our arguments in the first place,” explained Wiggins. “He knows all the legislators. Knows all the statewide officials. I think none of that would come new to him. So, if we in the legislature can make that happen, you know that I would think that it would have some certainly smoother sailing.”

Snyder did not have a comment when we reached out Wednesday.

We received the following statements about the potential position for Snyder.

“Drew Snyder is sharp and, having served as Mississippi’s Director of Medicaid for nearly seven years, certainly understands the subject matter well. I am always proud of talented Mississippians who are earning opportunities on the federal or national level making our state look good.” – Speaker Jason White

“Drew Snyder is a professional. In my conversations with the incoming administration…I’ll just tell you that I don’t know what the President is going to do. The President will make this decision and certainly his picks to lead HHS. But they couldn’t find a more intellectual, smart, conservative leader of any agency including Medicaid and CMS than Drew Snyder.” – Governor Tate Reeves

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