Connect with us

Mississippi

No state has ended personal income taxes since 1980, but Mississippi and Kentucky may change that

Published

on

No state has ended personal income taxes since 1980, but Mississippi and Kentucky may change that


About 45 years have passed since a U.S. state last eliminated its income tax on wages and salaries. But with recent actions in Mississippi and Kentucky, two states now are on a path to do so, if their economies keep growing.

The push to zero out the income tax is perhaps the most aggressive example of a tax-cutting trend that swept across states as they rebounded from the COVID-19 pandemic with surging revenues and historic surpluses.

But it comes during a time of greater uncertainty for states, as they wait to see whether President Donald Trump’s cost cutting and tariffs lead to a reduction in federal funding for states and a downturn in the overall economy.

Some fiscal analysts also warn the repeal of income taxes could leave states reliant on other levies, such as sales taxes, that disproportionately affect the poor.

Advertisement

The 16th Amendment to the U.S. Constitution grants Congress the power to levy income taxes. It was ratified by states in 1913. Since then, most states have adopted their own income taxes.

Eight states currently charge no personal income tax: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas and Wyoming. A ninth state, Washington, charges no personal income tax on wages and salaries but does tax certain capital gains income over $270,000.

When Alaska repealed its personal income tax in 1980, it did so because state coffers were overflowing with billions of dollars in oil money.

Though income tax eliminations have been proposed elsewhere, they have not been successful.

“It’s a lot easier to go without an individual income tax if you’ve never levied one,” said Katherine Loughead, a senior analyst and research manager at the nonprofit Tax Foundation. “But once you become dependent on that revenue, it is a lot more difficult to phase out or eliminate that tax.”

Advertisement

Republican Mississippi Gov. Tate Reeves recently signed a law gradually reducing the state’s income tax rate from 4% to 3% by 2030 and setting state revenue growth benchmarks that could trigger additional incremental cuts until the tax is eliminated. The law also reduces the sales tax on groceries and raises the gasoline tax.

If cash reserves are fully funded and revenue triggers are met each year, Mississippi’s income tax could be gone by 2040.

Supporters of an income tax repeal hope it will attract both businesses and residents, elevating the state’s economy to the likes of Florida, Tennessee and Texas. Their theory is that when people pay less in income taxes, they will have more money to spend, thus boosting sales tax collections.

The tax repeal “puts us in a rare class of elite, competitive states,” Reeves said in a statement. He added, “Mississippi has the potential to be a magnet for opportunity, for investment, for talent –- and for families looking to build a better life.”

Mississippi is among the most impoverished states and relies heavily on federal funding. Democratic lawmakers warned the state could face a financial crises if cuts in federal funding come at the same time as state income tax reductions.

Advertisement

The income tax provides “a huge percentage of what the state brings in to fund things like schools and health care and services that everybody relies on,” said Neva Butkus, senior analyst at the nonprofit Institute on Taxation and Economic Policy.

A 2022 Kentucky law reduced the state’s income tax rate and set a series of revenue-based triggers that could gradually lower the tax to zero. But unlike in Mississippi, the triggers aren’t automatic. Rather, the Kentucky General Assembly must approve each additional decrease in the tax rate.

That has led to a series of tax-cutting measures, including two new laws this year. One implements the next tax rate reduction from 4% to 3.5% starting in 2026. The second makes it easier to continue cutting the tax rate in the future by allowing smaller incremental reductions if revenue growth isn’t sufficient to trigger a 0.5 percentage point reduction.

Democratic Gov. Andy Beshear signed the legislation for next year’s tax cut but let the other measure passed by the Republican-led legislature become law without his signature. Beshear called it a “bait-and-switch” bill, contending lawmakers had assured the guardrails for income tax reductions would remain in place while pushing for the 2026 tax cut, then later in the session altered the triggers for future years.

New Hampshire and Tennessee already did not tax income from wages and salaries, but both states had taxed certain types of income.

Advertisement

In 2021, Tennessee ended an income tax on interest from bonds and stock dividends that had been levied since 1929.

New Hampshire halted its tax on interest and dividends at the start of this year.

Some other states also are pushing to repeal income taxes The Oklahoma House passed legislation in March that would gradually cut the personal income tax rate to zero if revenue growth benchmarks are met. That bill now is in the Senate.

New Missouri Gov. Mike Kehoe, a Republican, also wants to phase out the income tax. The House and Senate have advanced legislation that would take an incremental step by exempting capital gains income from taxes.



Source link

Advertisement

Mississippi

Mississippi legislators go all-in on AI for government efficiency

Published

on

Mississippi legislators go all-in on AI for government efficiency


play

Advertisement
  • Mississippi state department heads are embracing artificial intelligence to improve government efficiency.
  • AI is being used to digitize operations and standardize processes, such as prompting eligibility workers during interviews.
  • Officials assured legislators that AI implementation is not intended to replace state employees.
  • Department leaders also highlighted that restrictive state hiring processes make it difficult to recruit and retain qualified talent.

Mississippi State Health Officer Daniel Edney had a simple message for legislators when asked about government efficiency in his department.

“I’m thanking God today for AI, because it has brought a lot of solutions to a lot of the problems I’m facing,” he said.

Edney was one of six Mississippi department heads asked to speak with a House committee on government efficiency about the ways that they’re saving time and money in their jobs. Most of the others echoed Edney’s thoughts on artificial intelligence and other kinds of updated technology.

Bob Anderson, the executive director of the human services department, touted that his agency is “about 90% down the path of digitizing” all of its operations and few processes remain on paper. While the department’s systems are “ancient” now, he said, it has executed an agreement with a vendor and will pilot a new system later this year.

“We did this inventory recently and didn’t even realize that in-house, we had something on the order of 40 to 45 processes or tools within our agency that are already using AI,” he said.

The technology will be used next to prompt eligibility workers during interviews to ensure they ask all relevant questions, Anderson said, a much-needed standardizing tool.

Advertisement

“In the 60 or so counties where I’ve looked at their documentation,” he said, “there are about 60 different versions of what the script looked like when one of our eligibility workers sits down with an applicant.”

People concerned about artificial intelligence might wonder: If an AI tool asks all of the questions a human can, why would the department keep their employees around?

Edney promised legislators that they “won’t be laying off anybody at the health department because of AI.” Other department heads asked whether the goal of the committee and overall government efficiency movement was to have fewer state employees who, with the help of AI, could handle more work.

Advertisement

Increased technology use doesn’t mean maximum savings, said committee chair Rep. Hank Zuber, R-Ocean Springs. Zuber questioned why each agency was using a different type of software and paying an individual licensing fee, suggesting that the state pursue an all-encompassing contract with a single fee.

Beyond a statewide provider contract, Mississippians could also see legislation next session targeting the hiring regulations instituted by the state personnel board.

Edney, Anderson and Child Protections Services Commissioner Andrea Sanders complained that the hurdles built into the hiring process make it difficult to hire and retain qualified employees in their state jobs.

“For us to perform in the way that y’all expect us to perform, we have to have a healthy, well-educated professional workforce at the highest caliber that you can afford to have, and right now, I just can’t do that,” Edney said. “I’m constantly fighting to recruit top-level talent to the health department … What I need is a system that helps me get to where y’all want us to go.”

Advertisement

Anderson agreed with Edney’s comments, asking the Legislature to divorce his department from the strict restrictions of the personnel board.

“We need some flexibility, and what is frustrating at times is that we’ve built our personnel system around this notion that one size fits all,” he said. “One size fits none is really a more appropriate description.”

The slow hiring process combined with lower salaries, Sanders said, means that her department loses out on top candidates who are drawn toward the big paychecks and smooth onboarding that private business can offer them.

It is unlikely that the state will be able to afford much higher pay for its employees given its tight budget now. Margins will likely only become narrower, lawmakers said during the budget negotiation process this session, as the state’s income tax decreases.

Representatives heard suggestions from the department heads for hours on Wednesday afternoon, but it is unclear what they will take from the discussion and turn into bills next year.

Advertisement

Bea Anhuci is the state government reporter for the Clarion Ledger. She has covered Mississippi politics since the start of 2026. Email her at banhuci@usatodayco.com.



Source link

Continue Reading

Mississippi

Mississippi lawmakers talk school consolidation, closures in state

Published

on

Mississippi lawmakers talk school consolidation, closures in state


play

Advertisement
  • Mississippi legislators are discussing the consolidation of K-12 schools and districts to address declining student enrollment.
  • Officials propose two main options: combining entire school districts or consolidating multiple schools into a single building.
  • Closing individual schools is presented as the most effective way to achieve significant, recurring financial savings for districts.
  • Consolidation is a contentious issue, with some fearing it will harm communities, while others see it as a way to improve resources for students.

Legislators unpacked the details of one of the most contentious words to echo around the Capitol in the past few years: consolidation.

Mississippi representatives met on Thursday, June 4, to discuss, specifically, the consolidation of K-12 schools and districts throughout the state.

Committee Chair Rep. Rob Roberson, R-Starkville, warned that districts with fewer than 1,000 students were likely the first on the list. Mike Kent, an interim deputy superintendent with the department of education, suggested that the state could see a return to one-room schoolhouses in some areas.

Mississippi Department of Education Superintendent Lance Evans laid out two options that the Legislature and school districts could consider: consolidation of school districts and within them. The state has generally preferred to combine school districts in the past, eliminating extra administrative roles while retaining all of the schools, staff and operational costs associated with each district.

This option can be easier and more favorable among community members, Evans said, but the real savings come with the consolidation of two or more schools into a single building. Kent, who served as the Madison County superintendent for nearly a decade, echoed Evans’ endorsement of a school consolidation approach.

In his time in Madison County, Kent told the committee that he closed East Flora Middle School and “immediately saved $1.3 million.” The district didn’t need to pay the operational costs associated with the school, he said, and those savings are recurring.

Advertisement

Districts could also stand to make money after consolidation, he added, by selling those properties. Those property sales aren’t guaranteed, though, as evidenced by the 14 Jackson Public Schools buildings that remain unsold as of June 2026. The district has sold only two of its closed schools, according to its website, with a third under contract.

Legislators have had consolidation discussions for years at the Capitol, sounding alarms among those who fear the dissolution of their community without a school as an anchor point.

“Consolidation has been such a dirty word for most people. They think we’re trying to tear their community down,” Roberson said. “And the truth is, if the school is what’s holding it together right now, more than likely you’ve got bigger problems. We don’t need to let the children in these areas be harmed by the fact that the adults can’t figure out how to get this together.”

Advertisement

Consolidation needs to happen, Kent said, but it is a lengthy process that won’t begin to affect people for at least a few years.

He referenced the genesis of legislative-mandated consolidation in 2012, pointing out that it took at least two years for any action to begin. In some cases, he said, those two years weren’t enough. Evans suggested that the Legislature develop a 10-year plan for consolidation to ensure enough time for study and consultation with districts.

The path of least resistance, Evans said, might involve telling districts that consolidation will have to happen among their schools and turning control of the process over to them. That would likely involve more community input and take politics out of the discussion, a factor that Roberson said is crucial to the success of a consolidation plan.

“When we were looking at this in Oktibbeha County … I’m not going to deny this, it was tough,” Roberson said of his own experience with consolidation. “There was a lot of push and pull, and the grownups that were involved in the politics really made this worse. There were dynamics that had to do with Democrats and Republicans, racial demographics that do come into play with this, but once you get past all the political push and pull … it was hard for you not to come to the table and say, ‘Oh, this makes sense.’”

Putting politics aside, Roberson said, consolidation stems from a simple discussion about numbers. The most important of those is 66,000, which is approximately how many public school students Mississippi has lost in the past 10 years, according to data from the department for education.

Advertisement

Fewer students, Evans said, means districts have less money, based on the student funding formula, and need to cut down on costs. The most lucrative cost-saving measures come from closing schools.

One upside of consolidation, he said, is that larger schools and districts have more money to spend on things such as sports teams, advanced classes and dual enrollment programs. Rep. Kenji Holloway, D-Carthage, said that there were smaller schools in his area that could benefit from joining larger schools with resources they wouldn’t be able to afford otherwise.

Roberson’s preliminary 1,000-student benchmark is one idea that the committee will consider as it develops a guide for consolidation throughout the state. That number would put 27 of Mississippi’s 135 districts on notice for consolidation in the coming years. Another seven districts have just over 1,000 enrolled students.

Many of those districts are in the Delta, which has experienced the sharpest population decline in the state over the past several years.

Advertisement

Bea Anhuci is the state government reporter for the Clarion Ledger. She has covered Mississippi politics since the start of 2026. Email her at banhuci@usatodayco.com.



Source link

Continue Reading

Mississippi

Ferris, West to discuss Mississippi folk artists at UM Museum – The Oxford Eagle

Published

on

Ferris, West to discuss Mississippi folk artists at UM Museum – The Oxford Eagle


Ferris, West to discuss Mississippi folk artists at UM Museum

Published 6:30 am Thursday, June 4, 2026

The University of Mississippi Museum will host “A Conversation with Bill Ferris & Milly West” from 5:30 to 7 p.m. on June 17.

A reception will begin at 5:30 p.m., followed by the talk at 6 p.m.

The program will feature Bill Ferris, founding director of the Center for Southern Studies, author, scholar and folklorist, in conversation with photographer and former Southside Gallery owner Milly West, discussing “Mississippi Self-taught and Folk Artists in the Museum Collections.”

Advertisement

The discussion will explore the creativity, ingenuity and cultural storytelling of self-taught and folk artists represented in the museum’s collection. Ferris and West both had personal relationships with many of the artists and will share stories and insights into their artistic inspirations and processes.

Through paintings, sculpture, textiles, carvings and mixed-media works, the pair will examine how artists working outside traditional academic training have shaped the art and visual culture of the American South.

Among the artists discussed will be Luster Willis, whose work is currently featured in an exhibition at the museum. Most of the pieces on display were gifted to the museum by Ferris. Other artists highlighted during the conversation will include Sulton Rogers and Theora Hamblett.



Source link

Advertisement
Continue Reading
Advertisement

Trending