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Senate and House pass revised plans to eliminate income tax, increase gasoline tax – Mississippi Today

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Senate and House pass revised plans to eliminate income tax, increase gasoline tax – Mississippi Today


The GOP-controlled House and Senate passed competing “compromise” plans on Tuesday to eliminate the state income tax and raise gasoline taxes — but the Senate only narrowly passed its plan with the help of four Democrats. 

The proposals advanced by each chamber continue a debate over the potential risks and rewards of drastically altering the tax structure in the poorest state in the country as federal spending cuts loom. 

Tuesday’s Senate vote raises the question of whether that chamber could pass a more aggressive income tax elimination proposal even if the Republican Senate leadership reaches an agreement with House leaders.

The legislative dynamics 

The state Constitution requires a three-fifths majority of lawmakers to approve tax bills, so if Democrats Sarita Simmons of Cleveland, Juan Barnett of Heidelberg, Gary Brumfield of Magnolia and Angela Turner Ford of West Point had not joined the Republican majority to support the measure, it would have failed. 

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“You know what they call a medical school student who finished last in his class? A doctor,” Senate Finance Chairman Josh Harkins told reporters after the close vote. 

Only a couple of votes could have derailed the bill in the Senate because four Republican senators voted against the measure, and four Republicans voted “present.”

Harkins said the razor-thin margin shows how fragile the coalition of support is in the 51-member chamber and how there isn’t an enormous appetite to accelerate the income tax elimination rapidly as the House proposes. 

Some Democratic senators, including Minority Leader Derrick Simmons, appeared frustrated that four of their colleagues broke from them to ensure the measure’s passage.

“Time and time again, I’ve seen where (Democrats) have had the ability to exert our power, yet we have fallen short by not voting in solidarity with the working people of Mississippi,” Simmons told Mississippi Today. 

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Ahead of a Tuesday evening deadline, the House also passed an updated version of its original tax reform package in a 91-27 vote, with 11 Democrats crossing party lines in the Republican-controlled chamber to support the bill. Unlike the Senate, every Republican in the House chamber has voted to eliminate the income tax. 

Debate centers on slashing state budget as federal cuts loom

Republican House Ways and Means Trey Lamar said the House proposal slashes state revenues to give working people tax cuts. 

“This bill is the most substantial tax cut for Mississippians that this state has ever known or seen,” Lamar said.  

House Democratic Leader Robert Johnson called the bill “grossly irresponsible” and “dangerous,” arguing it would hollow out the state’s budget at a time when the federal government is considering vast spending cuts to programs Mississippi relies on. 

“We are the poorest state in the union, the lowest per capita income in the country … They are getting ready to put you in a situation where it doesn’t matter how much money they put back in your pockets,” Johnson said. “Be cognizant of the fact that you elected people to come in here and gut your public services, gut your public education, gut your public safety and gut your public health.” 

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Experts have told Mississippi Today that deep federal spending cuts, along with the elimination of the state income tax, could reduce Mississippi’s ability to fund services. Some also warn the shift to a more regressive form of taxation would hit poor and low-income Mississippians hardest.

Mississippi is perennially among the most federally dependent states, receiving nearly a 3-1 return for every dollar in federal taxes it pays. Both Republican and Democratic lawmakers have expressed fear of the economic impact of federal cuts.

The focus of future negotiations 

Now that the two chambers have passed alternative tax cut plans, six lawmakers will likely try to work out a final agreement in a conference committee. 

Going forward, the Senate is unlikely to accept a deal that increases the state sales tax and does not change the structure of the Public Employees Retirement System. The Senate is pushing a “hybrid” retirement plan to shore up the system financially by cutting benefits for future employees.

House Speaker Jason White said he plans to press the Senate to move off its “hard condition” of overhauling PERS. His caucus wants a dedicated stream of revenue for the retirement system. The House has proposed diverting most of the state’s lottery proceeds to PERS, or he suggested for the first time Tuesday that revenue from legalizing online sports betting could also help the system.

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“The spot we’ve identified for additional revenue is mobile sports betting, where we’re losing to illegal gambling now,” White said. If (the Senate) wants to keep the amount of either gas tax or sales that has to be raised to offset this income tax (cut), then we should look at that as a valid place to look.” 

Legalizing mobile sports betting has been another wedge between the chambers. The House has passed legislation this session to legalize the practice but the measure faces opposition in the Senate.

A look at the latest tax proposals  

The new House Plan would:

  • Fully eliminate the state income tax by 2037. The elimination would begin phasing in after the state next year finishes implementing another income tax cut it approved in 2022. The phase-in period would take a decade, beginning with a reduction from 4% to 3.5% and then lowering further from there.
  • Cut about $2.2 billion from the state’s current $7 billion general fund. The state would also raise about $750 million through tax increases. But much of collected through tax increases would go to the general fund.
  • Increase the state’s net sales tax from 7% to 8%. The revenue from this tax increase would provide $48 million annually to pay for infrastructure improvements via the State Aid Road Fund. The remaining money would go into the state’s general fund.
  • Add a new 15-cents-a-gallon excise tax on gasoline. The tax increase would be phased in at 5 cents a year over three years. This would be added to the current 18.4-cents-a-gallon excise Mississippi motorists currently pay.
  • Cut the sales tax on groceries from 7% to 5%.
  • Increase the state’s “use yax,” which is imposed on goods purchased outside the state or online, from 7% to 8%.
  • Create a new fund that gives those over the age of 65 property tax credits of $200 a year. The fund would be paid for by revenue from the use tax increase referenced above.
  • Transfer $100 million per year from the state lottery system into the public employee retirement system. 

The new Senate plan would: 

  • Decrease the 4% income tax rate by .25% each year from 2027 to 2030 and leave it at 3% in 2030.
  • After it reaches 3%, the income tax would be reduced with “growth triggers” or at a proportional rate depending on the difference between the state’s revenue and spending plans that year. 
  • Reduce the sales tax on groceries from 7% to 5%.
  • Increase the 18.4-cents-a-gallon gasoline tax by 9 cents over three years, for a total of 27.4 cents, then this would increase automatically based on the cost of road construction.
  • Change benefits for government employees hired after March 2026 to a “hybrid” retirement that includes part-defined benefit and part-defined contribution.

Republish our articles for free, online or in print, under a Creative Commons license.

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Mississippi homeowners blame a noisy data center plant for sleepless nights. The mayor’s advice? “Consider selling.”

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Mississippi homeowners blame a noisy data center plant for sleepless nights. The mayor’s advice? “Consider selling.”


It was 4 a.m. on a Sunday and 46-year-old Jason Haley was once again wide awake. 

The suburban silence that Haley had grown used to in his two decades as a resident of Southaven, Mississippi, had, for the last few months, been replaced by a constant whirring, like an airplane hovering over his home, he said.

The noise keeping Haley awake was coming from a plant powering Elon Musk’s xAI data centers in the area, according to a lawsuit filed in June against the company and its subsidiary, MZX Tech. Haley and two other Southaven residents, who live within a mile of the plant, allege in the suit that “near-constant” noise and vibrations are causing negative physical and psychological health effects.

The filing comes amid growing resistance toward data center development, with the majority of Americans opposing local construction of a data center, according to a Gallup poll published earlier this year.

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Similar disputes are playing out across the country, like in Mount Pleasant, Wisconsin, where a lawsuit this month filed by residents alleges a data center emits “unreasonable and excessive noise” onto residents’ properties and in Lowell, Massachusetts, where noise from a data center’s cooling center “disrupts neighbors’ sleep,” according to an April suit.

There are more than 4,000 data centers in the U.S., according to a recent United Nations report. To power the data centers, developers are building their own plants, sometimes with little warning to residents like Haley. 

Haley reached out to Southaven Mayor Darren Musselwhite about the noise in emails he shared with CBS News. In one last November, he urged Musselwhite to drive through the neighborhood “and take a listen to the constant high pitch noises.”

“I am aware of the noise and working on a solution with xAI officials,” Musselwhite had responded to Haley an hour later. “It is a problem,” he said in another email later in the day.

But soon, another sleepless night rolled around and Haley was emailing the mayor again.

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“Anyone else I can reach out to?” Haley wrote to Musselwhite. “It’s almost 4 am and I can hear it from my bed. The high pitch and roaring combined is full force at this time. My ears are ringing. I can’t live in this. How was this ever approved?”

“I don’t care that this is Elon’s project”

Just north of Southaven, which sits on the Mississippi-Tennessee border, xAI’s data center Colossus went online in Memphis in September 2024. The company dubbed it “the world’s largest AI supercomputer.”

By late July 2025, Musk was announcing that another data center, Colossus 2, was set to begin operation in the area within weeks.

Days later, an announcement popped into the Facebook feeds of Southaven residents: An energy facility that had been dormant for decades will be revived to support xAI’s expanding data center operations in the area, Musselwhite said.

The post was met by a flood of comments, with some lauding the development and others expressing concern about the plant’s impact on the environment and strain on local resources. 

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Meanwhile, Haley started hearing sounds.

“My first thought was somebody’s got a leaf blower going all the time,” he said. 

By December, the noise had become a fixture. He started getting headaches, stopped getting sleep and slipped into feelings of hopelessness and depression. The noise was inescapable, he said, and despite his best efforts to drown it out (sleeping with earplugs, getting a box fan for white noise), it continued to drone on.

So Haley began speaking up — at city government meetings, on Facebook and through TikTok, where he posts videos of himself measuring the noise with a sound meter. He later became involved in a grassroots coalition called Safe and Sound, drawing awareness to concerns surrounding xAI’s undertakings in the region.

The “activist” label is one he’s reluctantly accepted. 

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“I’ve never been into any kind of activism, never really kept up with politics a whole lot,” he said. “I’m just a guy that has a problem with this noise, and started speaking out and trying to raise awareness.”

When he emailed Musselwhite about the noise again in December, his message came with a disclosure: “I am not a republican or democrat, I don’t care that this is Elon’s project. I didn’t know whose it was when I started complaining about the noise that started in August.”

Musselwhite responded a few days later. 

“As I mentioned to you in the public meeting, you seem to be a reasonable person,” he said. “I will give you some unsolicited advice from an older man, be careful with whom you associate so you don’t damage your credibility.”

By January, xAI was expanding its footprint with a third data center in Southaven, MACROHARDDR. As residents like Haley continued pushing back online and in city meetings, Musselwhite had a new message.

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Southaven, he said in a Facebook post, was “under attack by all who choose to oppose Elon Musk because of his high-profile political stances.” He warned residents to “beware of the smokescreen of radical politics.”

In his emails to Haley, Musselwhite continued to acknowledge the noise as a problem.

“The noise issue is one of my highest priorities and I have been in detailed discussions with xAI and many independent professionals to resolve this,” he wrote in March.

But in the same email, he offered Haley more advice: “I know they want houses for employees, so you may want to consider selling your home.”

CBS News made multiple attempts to speak with Musselwhite and did not receive a reply.

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Migraines, ringing ears and sleepless nights

Moving isn’t Haley’s preference, but he said he is in the financial position to do so if he chooses.

That’s not the case for everyone.

A little over a decade ago, 31-year-old Taylor Logsdon bought a home for her growing family in Southaven and began building her life around it. 

“We loved it here,” she said. “It was peaceful, it was quiet, didn’t have to worry about nothing.”

But that was before the noise, so loud, she said, that it sometimes shakes her home. Logsdon, who is also involved in the Safe and Sound coalition and is suing xAI with Haley and one other Southaven resident, said she has experienced migraines and anxiety as a result of the noise. 

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She said she has persistent ringing in her ears and so do her children. A full night of sleep has become rare for the family.

“I would move tomorrow if I could,” she said, adding that she needs to save money before she can afford to move.

Her children, all under the age of 13, are having trouble staying awake at school.

“One of them is extra angry all the time — never, never has been that way, but he’s just irritable like all the time,” she said. “I feel like I’m snappier too.”

xAI spent millions of dollars trying to mitigate the sound with a sound wall, a berm and evergreen trees, Musselwhite said in a February Facebook post. 

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“It still hasn’t helped. It hasn’t even put a dent in it,” Logsdon said. 

People living in areas where there is “constant humming or buzzing” report headaches, stress and sleep disturbance, said Dr. Samoon Ahmad, a clinical professor of psychiatry at New York University.

A 2023 study found that environmental noise exposure can lead to adverse associations for cardiovascular disease and mortality, diabetes, hearing impairment, neurological disorders and adverse reproductive outcomes.

“People think of annoyance as an abstract term,” Ahmad said. “It’s not an abstract term because it has real physiological ramifications.”

The World Health Organization recommends less than 40 decibels of annual average nighttime noise outside of bedrooms to prevent adverse health effects. Haley has recorded noise levels over 60 decibels as late as 10:15 p.m. from his Southaven backyard. 

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Musk’s Memphis

Even before Logsdon and Haley decided to take action against xAI, Musk’s growing presence in the Memphis area garnered attention from advocacy groups over health and environmental concerns.

The National Association for the Advancement of Colored People filed a lawsuit in April against xAI claiming the Southaven plant emits “significant” amounts of harmful pollutants from its 27 gas turbines, which has since increased to 59, according to a court filing reviewed by CBS News. The NAACP has also filed an appeal to challenge the Mississippi Department of Environmental Quality’s decision to issue an air permit allowing the Southaven plant to operate 41 permanent methane gas turbines. An independent study found their operation would increase air pollution in an area already grappling with a disproportionate number of asthma-related emergency room visits.

CBS News has reached out to xAI for comment.

Musk’s investment in the latest Southaven data center brings his company’s contribution to the area to $20 billion, according to the office of Mississippi Gov. Tate Reeves. The governor called it “the largest economic development project in Mississippi’s history.”

Musk’s financial footprint has also extended beyond the data centers — MZX Tech donated over $1.3 million to the Southaven Police Department in February, according to the donation agreement obtained by CBS News, and has offered half-priced Starlink for those in the Memphis region.

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But Logsdon says the cost to her and her family’s health has her wondering why it feels like her city is willing to “hurt the few to get the benefits.”

“We were not a failure town before,” Logsdon said. “It’s not like our economics were terrible here.”

Southaven had a median household income of over $70,000 in 2024, according to the U.S. Census Bureau — $20,000 more than the state average. 

Logsdon, currently a stay-at-home mom, will be searching for work this fall so she and her husband can start saving up to move away from the plant. For now, her goal is a full night’s sleep.

“I hope that my family can go back to having our normal,” she said. “Being able to sleep at night, being able to enjoy my backyard, being able to go swimming.”

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GPS data tracks boat Mississippi teen Nolan Wells was on before he went missing

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GPS data tracks boat Mississippi teen Nolan Wells was on before he went missing


GPS data from the Mississippi Department of Marine Resources, obtained by CBS News, tracks the movements of the boat that carried Nolan Wells to Horn Island on July 4. Wells was found dead after going missing following an outing on the island.

The vessel left a dock at approximately 9:56 a.m. that morning and arrived at Horn Island at 11:14 a.m. CBS News has previously reported that Wells was not on the boat when it departed the island. 

According to the GPS data, the boat left Horn Island at 4:31 p.m. and returned to its original departure dock. It then traveled into Fort Bayou around 5:52 p.m. before returning to the dock at 6:06 p.m.

Later that evening, the boat went to the Fort Bayou boat launch at 7:19 p.m., according to the MSDMR report. From there, it traveled over land — presumably towed by a vehicle — to the Biloxi, Mississippi, residence of the boat’s owners. 

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The MSDMR report indicates that the boat’s owner, his mother and one other individual who was reportedly with Wells on the day of the incident have cooperated with the investigation.

The department’s report ends on July 5, following notification that the Jackson County Sheriff’s Office would take over as the lead investigative agency.

This undated photo provided by the family in July 2026 shows Nolan Xavier Wells with his mother, Christine Wonsley.

Family photo via AP

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Wells, 18, was last seen on July 4 on Horn Island, where he had taken a boat trip with friends to celebrate the holiday, officials said. Wells traveled to the island with his friends but did not return to the mainland with them that afternoon, Jackson County Sheriff John Ledbetter has said.

He was last seen on the island at 3 p.m., according to attorney Ben Crump’s office. His mother reported him missing later that night and a search began.

His body was discovered July 6 off the coast of the island, which is about 10 miles south of the Mississippi mainland, following a search that involved the U.S. Coast Guard, the Mississippi Department of Marine Resources and the National Park Service.

Dental records confirmed the body was Wells, Jackson County coroner Bruce Lynd told CBS News. An autopsy took place on July 7, Lynd said, but the results were not immediately made public. Wells’ body was flown to Washington, D.C., for an independent autopsy, according to Crump. 

Wells’ parents have said they don’t believe their son would’ve stayed behind on the island by choice when his friends left by boat.

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Christine and Elmore Wonsley, the parents of Nolan Wells, spoke to “CBS Mornings” on Friday, July 10, 2026.

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“No, he wouldn’t. Nolan always stays with the group,” Elmore Wonsley, Nolan’s father, told “CBS Mornings” last week. “If you be with me, you come back with me. So that I don’t understand, and with me being a parent, if I was in that situation, I would have told them, ‘You’re going to get back on this boat with me because I don’t want to answer to your parents if something happens to you.’”

When directly asked if he believed Nolan was left behind on the island, his father responded, “Yes. I don’t believe he decided to stay on the island by himself. It just doesn’t — that’s not his character.”

Wells went to Ocean Springs High School and was a rising sophomore on Southwest Mississippi Community College’s football team. Crump said Wells was a good swimmer.

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How permanent daylight saving time would impact Mississippi

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How permanent daylight saving time would impact Mississippi


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Are Americans finally done changing the clocks twice a year? Congress moved a step closer to ending the ritual after the U.S. House passed legislation that would make daylight saving time permanent.

It hasn’t been approved by the Senate yet, but it did pass the House with broad support (308-117). If it passes the Senate, it could be signed by President Donald Trump or become law without his signature, unless he vetoes it.

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Trump has previously backed ending twice-a-year time changes.

“I am going to work very hard to see The Sunshine Protection Act signed into Law. It’s time that people can stop worrying about the ‘Clock,’” he wrote in a May Truth Social post.

A few versions of the Sunshine Protection Act were introduced in Congress. Rep. Vern Buchanan, R-Florida, introduced the one that’s gaining ground last year.

Here’s what to know about daylight saving time and the move to change it.

What is daylight saving time and why do we use it?

Daylight saving time is the practice of setting clocks forward an hour from March until November in an effort to gain more sunlight during the summer months.

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According to the Library of Congress, it was first enacted in 1918 as a fuel cost-saving measure during World War I.

Daylight saving time became federal law under the Uniform Time Act of 1966. Under the law, some states can opt to exempt themselves from daylight saving time.

Would Mississippi keep daylight saving time year-round?

In 2021, the Mississippi Legislature passed a law saying the state plans to stick with daylight saving time year-round. But that only takes effect if Congress changes the federal law to let states adopt it all the time. A bill updating the effective date died in committee in the 2026 session.

Nineteen states, including Mississippi, are ready to make daylight saving time permanent if Congress changes the law to make the twice-a-year time shift optional, according to the National Conference of State Legislatures (NCSL).

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How later sunrises would affect Mississippi

Sunrise and sunset times in summer would look the same.

But the period from November to March would be different. The amount of daylight would be the same, just shifted an hour later than usual.

Mississippi could expect the latest winter sunrises around 7:59 a.m. in mid-January. The earliest sunsets would shift from about 4:46 p.m. in early December to 5:46 p.m., according to timeanddate.com.

Why permanent daylight saving time failed before

Yes. Congress did drop Daylight Saving Time before.

The move failed in 1974 after parents worried about kids going to school before dawn, risking more vehicle crashes.

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Some parts of the country, like Michigan or Indiana, don’t see sunrise until after 9 a.m. with the permanent daylight saving time.

When clocks fall back in 2026

Clocks will “fall back” from 2 a.m. to 1 a.m. on Sunday, Nov. 1, 2026, unless Congress changes the law.

Daylight saving time ends on the first Sunday in November each year, under current law. That’s when we get back that missing hour of sleep from the spring time change.

Does Mississippi change clocks twice a year?

Yes. Mississippi, which is in the Central time zone, observes daylight saving time.

What time is it in Mississippi?

Visit timeanddate.com to see the current time in Jackson.

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Which states don’t observe daylight saving time?

Most of the U.S. participates in daylight saving time except for Hawaii and most of Arizona. The Navajo Nation in the northeast corner of the state does participate.

Bonnie Bolden is the Deep South Connect reporter for Mississippi with USA TODAY Network. Email her at bbolden@usatodayco.com.

Melina Khan is a national trending reporter for USA TODAY. Keep up with her on X @melinakh and Instagram @bymelinakhan.





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