Tax Cut Plans Moving Through The Legislature

JACKSON, Miss. (AP) – Election-year tax cuts are moving ahead in the Mississippi Legislature as Republican leaders propose differing ideas.

The Senate voted 38-9 Tuesday for a $382 million proposal by Lt. Gov. Tate Reeves to phase out Mississippi’s business franchise tax and cut some income taxes.

Reeves says it’s a “responsible” plan that will encourage business expansion.

Speaker Philip Gunn and other House Republicans are backing a plan to phase out Mississippi’s personal income tax.

The House Ways and Means Committee voted 15-7 Tuesday to approve House Bill 1629.

The House is likely to debate the $1.7 billion tax cut Wednesday. The bill requires a 60 percent vote to advance.

Opponents warn that tax cuts could starve state agencies of needed revenue and make the tax system more regressive.