Posted on: March 20th, 2015
In 1912, Mississippi became the second state in the union to levy a personal and business income tax (after Wisconsin). By 1940, 33 states had an individual and/or corporate income tax.
Fast-forward 100 years.
In 2014, Mississippi’s business climate was ranked 37th out of the 50 states. The state improved only one position since 2013.
Republican leaders in the state of Mississippi are responding to the state’s negative standing. They have entered into a spirited competition over tax policy this legislative session. But take note: This isn’t the typical pro-tax versus anti-tax clash. The pivot to creating pro-growth tax policy came late in 2014, just before the start of the 2015 legislative session, from Governor Phil Bryant. His relatively modest tax cut proposal, which called for a $79 million tax cut for families earning less than $50K annually, would only apply in years when the state sees revenue grow by at least 3 percent.