House Passes Bill To Phase Out State Income Tax And Reduce Grocery And Tag Taxes


The Mississippi House voted 96-12 Thursday to approve the largest tax cut in state history, phasing out the income tax and reducing taxes on car tags and groceries.  But it would raise the sales tax on many items.   Ways and Means Committee chairman Trey Lamar said the bill “rewards work” and is “fair for everyone”.   Mississippi would become the tenth state without an income tax.  The sales tax on groceries would be gradually reduced from seven per cent to four per cent while the general sales tax would increase to eight and a half per cent.  There would be a 35 per cent reduction in ad valorem taxes on car tags.  The bill now goes to the Senate where a similar House proposal died last year.