Mississippi
MS House passes income tax cut after nearly 2-hour debate. Will Senate pass it next?
 
																								
												
												
											 
Democrats concerned about impact of raising taxes on local populations
Mississippi House passes bill to cut income and sales tax
Rep. Trey Lamar, R-Senatobia, House Ways and Means chairman, presents the Build Up Mississippi Act to cut income and sales taxes.
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.”
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 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.
 
																	
																															Mississippi
Three business organizations joining forces to become the Mississippi Business Alliance
 
														 
JACKSON, Miss. (WLBT) – The state’s top lawmakers and business leaders mingled at the Mississippi Coliseum on Thursday morning – tradition for the annual Hobnob event.
The Mississippi Economic Council played host for the 24th and final time.
If you’re involved with politics or business, you’ve heard of these three organizations and the work they’ve been doing.
The Mississippi Economic Council, the Mississippi Manufacturers Association, and the Business and Industry Political Education Committee.
“Mississippi needed a single authoritative and common voice for business,” explained MEC Chair John Hairston. “Policy makers were asking for clarity when it comes to legislative priorities. Business owners were asking for alignment of our policies, and our members were asking to become more impactful.”
So, these three groups will become one.
“Will represent every sector of Mississippi’s economy under one banner: the Mississippi Business Alliance,” said Scott Waller, MEC President and CEO.
The new rebranding was unveiled in front of the Hobnob crowd.
However, things officially began with the merged efforts on Jan. 1.
“Previously, you had legislators and policymakers trying to look for advice or input and they had three different organizations that were similar and overlapped,” described John McKay, current head of the Mississippi Manufacturers Association.
McKay will lead the Mississippi Business Alliance.
The joint organization will build on the already existing work of the three groups – everything from policy to workforce development and vetting of business-friendly candidates.
According to policymakers, there will be a value in having a singular group for business interests.
“These three organizations are merging not just to consolidate, but to elevate,” Gov. Tate Reeves emphasized.
“To have a unified voice is very helpful to those of us who are supposed to implement public policy,” Lt. Gov. Delbert Hosemann said.
And they’re looking at this as more than a simple merger.
“It’s really a transformation of how we operate and sponsor the business community moving forward,” Hairston continued. “It’s the uniting of our collective strengths into one clear and very decisive force for progress into the future, for the benefit of our grandchildren and those that come after them.”
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Mississippi
Mississippi woman searches for daughter in Jamaica
 
JACKSON, Miss. (WLBT) – A Mississippi mother is searching for answers after not being able to get in contact with her daughter who is trapped in Jamaica from Hurricane Melissa.
Lori Washington, an Ocean Springs native, told 3 On Your Side that she has not heard from her daughter since Monday.
“Now my mind is flashing back to the phone call that I got when my soldier was killed,” Washington said. “My oldest boy was killed in 2014 and now I’m scared that I’m going to get another phone call.”
She shared that her daughter, Lasha Thornton, travels frequently for work and the last location she knew of her whereabouts was Trelawny, Jamaica.
Washington says Thornton just turned 26 and must’ve been in Jamaica for her birthday.
In a text from her daughter Monday, Washington shared that she informed her the airports were shut down, and she would have to wait out the storm.
It has now been two days since hearing from her daughter, and Washington is doing all that she can to find answers.
“Once some reporter over there can hear this and make sure that my daughter is either at the convention center, where they have some of the tourists, or if they can check, I just want to know she’s okay and that she’s eating and she’s hydrated,” Washington said. “And I want her to come home, it’s time to come home.”
According to a post Tuesday on the country’s government website, there were around 6,000 people in shelters.
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Mississippi
Lab monkeys on loose after Mississippi crash were disease-free, university says
 
														 
A group of monkeys being transported on a Mississippi highway that escaped captivity on Tuesday after the truck carrying them overturned did not carry a dangerous infectious disease, a university has said.
The truck was carrying rhesus monkeys, which typically weigh around 16lb (7.7kg) and are among the most medically studied animals on the planet.
Video shows monkeys crawling through tall grass on the side of Interstate 59 just north of Heidelberg, Mississippi, with wooden crates labeled “live animals” crumpled and strewn about.
The local sheriff’s department initially said the monkeys were carrying diseases including herpes, but Tulane University said in a statement that the monkeys “have not been exposed to any infectious agent”.
All but one of the escaped monkeys were killed, the Jasper county sheriff’s department said in a post on Facebook, warning that the monkeys were “aggressive”.
They were being housed at the Tulane University National Biomedical Research Center in New Orleans, Louisiana, which routinely provides primates to scientific research organizations, according to the university.
The crash happened about 100 miles (160km) from the state capital of Jackson. It was not clear what caused the truck to overturn.
The Associated Press contributed to this report
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