DOUGLAS CARSWELL: How Mississippi Eliminated The Income Tax

Mississippi has made history as the first state in the U.S. — aside from oil-rich Alaska — to pass legislation aimed at phasing out its income tax.

This monumental achievement, spearheaded by Governor Tate Reeves and House Speaker Jason White, marks a significant victory for the state.  The newly passed bill outlines a plan to eliminate the income tax over the next decade, starting with incremental cuts and followed by a series of budget-driven “triggers.”

Beginning next year, Mississippi’s income tax rate will drop in 0.25 percent increments, sliding from 4 percent to 3 percent by 2030.  After that, further reductions will hinge on the state’s budget surplus. Given Mississippi’s recent track record of substantial surpluses, the income tax could vanish entirely by the mid-2030s.

So, how did Mississippi become such a trailblazer?  It very nearly did not happen.

The push to eliminate the income tax has been a cornerstone of Governor Reeves’ agenda, with serious legislative efforts kicking off in 2022 under then-House Speaker Philip Gunn.

Gunn’s genius was to simplify the state’s variable tax rates into a flat 4 percent on income above $10,000.  While this didn’t eliminate the tax outright, it leveled the playing field for Mississippi households, setting the stage for broader support of full elimination.