Staff Reports
Mississippi is about to give its residents a financial gift that could land it right up there with the great no-tax states of the nation. The cocktail of less taxation and more money in pockets is a recipe for prosperity as Governor Tate Reeves and the Republican-controlled legislature gear up to phase out the state income tax and scramble the hat for the rest of the country to follow suit. The recently passed “Build Up Mississippi Act” is set to reduce the income tax from 4.4% down to a tantalizing 3% by 2030, eventually aiming for a glorious zero percent. Tying the reductions to state revenue meant that any resistance from critics will be left floundering.
Now, make no mistake, Mississippi isn’t exactly in a financial utopia. While it leads the nation in catfish production and boasts impressive agricultural credentials, its economic diversity could probably use a little boost. The state still finds itself floundering in per capita income as residents wonder how they can grow wealthier without ridiculous taxes holding them back. What good is a booming agricultural sector if the fruits of its labor get snatched up by Uncle Sam before they even hit the dinner table?
The brilliance of the Build Up Mississippi Act isn’t just in the income tax cuts; it also slashes the tax on groceries from 7% to 5%. Imagine families saving money when they fill up their carts with essentials. This should be music to the ears of low-income residents who often feel the weight of inflated taxes more than others—every little bit helps when you’re counting pennies to put dinner on the table.
Mississippi Will Phase Out the State Income Tax. Why Can't Other States Do the Same?.https://t.co/yxkSKHxX6V
— PJ Media (@PJMedia_com) April 15, 2025
Mississippi is joining a select club—one that includes nine other states with no income tax whatsoever. The evidence is clear that lower income taxes correlate with healthier economies. Just look at Texas, which has seen its economy grow faster than Oklahoma’s over the last 20 years, despite the latter managing a lower income tax of 4.75%. This sounds like an economy where job seekers flock and entrepreneurs thrive, and Mississippi is positioning itself for that very same attraction.
Interestingly, the road to tax nirvana wasn’t always paved. There was a time when Mississippi’s tax rates rivaled the likes of Illinois, leaving many citizens grumbling about high taxes and dwindling paychecks. However, a series of Republican-led efforts culminated in the 2022 flat tax introduction, and now the state is eyeing complete elimination. Critics who focus on a typo in the bill instead of celebrating the economic potential are grasping at straws. If anything, the typo should be seen as a sign of how flexible legislation can evolve, sparking debate on the best ways to cut taxes while maintaining state revenue.
While some naysayers may moan about the ominous implications of reducing taxes, greedy leaders of blue states are the ones panicking. With high taxes on everything from income to groceries, they stand on shaky ground as Mississippi proves that people will literally vote with their feet, leaving the oppressive blue tax landscape behind. Let’s hope other states take notes before it’s too late, or they may find themselves facing an exodus when people flee to greener, tax-free pastures.
