The following is a press release from the office of Lt. Gov. Tate Reeves:
JACKSON – One day after nearly half of Senate Democrats joined all Senate Republicans in passing the largest tax cut in state history, House Democrats voted almost unanimously to kill the same bill.
“Fifty-two House Democrats believe they can spend your money better than the 1.23 million Mississippians that this bill would have benefited,” Lt. Gov. Tate Reeves said. “The Senate passed this bill in a large, bipartisan vote in an effort to simplify the tax code and encourage long-term economic growth. Hopefully, a few House Democrats will hear the cries of the people back home that need a little more money in their pockets to provide for their families.”
On Tuesday, the Senate voted 40-11 to amend House Bill 1629 to include additional income tax cuts proposed by Speaker Philip Gunn plus relief for small businesses proposed under Lt. Gov. Reeves’ Taxpayer Pay Raise Act.
The $555 million tax relief plan earned praise from Americans for Tax Reform. It would have:
· Eliminated the 3 percent and 4 percent tax brackets levied on income, · Reduced the overall tax burden on small business owners, and · Removed the investment penalty, or franchise tax, on businesses’ property and capital.
Eliminating the franchise tax alone would have grown the state’s GDP by $282 million and added 3,514 jobs within 10 years, according to a Mississippi State University study.