Special to Wesson News
In the midst of the State Legislature’s debate over cutting taxes, Mississippi Governor Tate Reeves called once again for eliminating the state income tax in his State-of-the-State address.
“This money does not belong to the government,” Reeves said of the income tax. “It belongs to the hard-working Mississippians who earn it.”
The State House heas passed a bill that phases out the state income tax, cuts the state grocery tax and raises sales taxes and gasoline taxes – a plan that, over time, would cut about $1.1 billion from the state’s current $7 billion general fund money.
Speaking to a joint session of the House and Senate on the south steps of the Capitol, Reeves appeared to side with the House, stopping just shy of endorsing its plan.
“This piece of legislation – which was passed by a large bipartisan majority by the way – shows us a realistic path to eliminate the tax on work in Mississippi once and for all,” Reeves said.
Reeves did not mention the part of the House proposal that raises sales taxes and creates a new five percent gasoline tax. In the past, Reeves has said he opposes “tax swaps” that raise any taxes even if the net is a cut.
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The Senate has yet to release a tax cut plan, though Republican Lt. Gov. Delbert Hosemann, the leader of the Senate, has said he plans to unveil a proposal soon.
In his address, Reeves also, again, called on lawmakers to oppose efforts to expand Medicaid coverage to the working poor, a policy he calls “welfare,” because President Donald Trump’s administration could make sweeping changes to Medicaid policy in the coming months.
Medical leaders around the state have argued Medicaid xpansion would provide more health care options to poor Mississippians who can’t afford preventative medical care and economists have predicted that expansion would be a financial boon to the state.
Neither legislative chamber has put forward a substantive proposal to expand Medicaid coverage, but both Senate Medicaid Chair Kevin Blackwell and House Medicaid Chair Missy McGee advanced “dummy” bills out of their respective committees that would serve as a vehicle for potential expansion legislation.
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