The federal government announced on Tuesday that 75% of Americans had received at least one dose of a COVID-19 vaccine — a celebrated milestone that inspires hope that “normal” is on the horizon and the darkest days of the pandemic are behind us.
But there is no such joy in Mississippi.
Our state reports just 48% of residents have received at least one dose. That gives us the 47th lowest rank of any state in the nation — and the lowest of any Southern state. Just 40% of our population is fully vaccinated, which ranks 48th in the nation.
The COVID-19 shots, among the safest and most effective vaccines scientists have ever developed, are working wonders. In Mississippi last week, 99% of new cases were among the unvaccinated; 87% of COVID-related hospitalizations were among the unvaccinated; and 86% of deaths were among the unvaccinated.
Mississippi just experienced its darkest month of the pandemic. During the month of August alone, the virus accounted for one-fifth of the state’s total cases since the pandemic began and killed almost 1,000 of our neighbors.
By mid-August, Mississippi was the COVID capital of the world. At one point later in the month, four Mississippi counties claimed spots in the national top 10 list for highest caseload per capita, including the top spot.
The state’s healthcare system was so overwhelmed that experts warned the entire hospital network was within days of collapsing. To fend off that collapse, the state had to request that the federal government foot the $8 million-per-week bill for 1,100 contract healthcare workers.
As the virus worsened, more Mississippians felt led to get vaccinated. The last week of August, 86,000 Mississippians got inoculated — the most in a single week since mid-April, when the vaccine was first made widely available to most Mississippians.
But by the first week of September, the vaccine numbers had declined once again: just 75,000 Mississippians got the shot. If the history of the pandemic is any indication, this week’s vaccination numbers will be lower than that.
Dobbs has estimated that Mississippi needs around 85% of the population to be fully vaccinated to achieve low and steady transmission rates across the state because the delta variant is so highly contagious.
“Hopefully we’re not going to see the same sort of peak we’ve seen in the coming weeks. We’re starting to see some stabilization in numbers and hospitalizations, but again, time will tell,” Dobbs said. “And the better that we do at both preventing transmission and getting vaccinated is going to help us out of that.”
Mississippi Today reporter Will Stribling contributed to this report.
Traveling the twisting, two-lane blacktop pastoral roads of Jasper County brings the nonstop sight of cows, horses and chickens. Nestled into this farmland is the Stroka-Gene-Us Alpaca Farm in Stringer, where one can pet these animals and learn how to spin their fleece into yarn.
The 27-acre farm owned by Mary Ann Stroka is home to several alpacas where visitors can pet the docile animals during educational tours conducted by Stroka herself.
Stroka retired to Stringer from New York. After seeing her first alpaca, she fell in love. “They were so unbelievably soft,” said Stroka. “I just had to have a few.”
She and her family also needed a place to to keep the alpacas, which many confuse with their larger cousin, the llama. She settled on this location, which can be found through a left turn off MS 15 South onto County Road 155 in Stringer.
“Alpaca fleece is ten times softer and three times warmer than wool,” said Stroka. “It’s naturally water resistant and hypoallergenic. From separating fleece fibers using a carder machine to the spinning wheel making a skein of yarn is so relaxing. You get into a rhythm. The whole process takes about nine hours, so I do it because I love it, certainly not for the money,” she said.
No, not a llama, an alpaca. Alpacas are smaller than their llama cousins of the camelid family. That family also includes vicunas, guanacos, bactrian (two hump) camels and dromedary (one hump) camels. This is one of the alpacas at the Stroka Gene-Us Alpaca Farm owned and operated by Mary Ann Stroka in Stringer.
Alpacas at the 27-acre Stroka Gene-Us Alpaca Farm owned and operated by Mary Ann Stroka in Stringer. Stroka became fascinated with the animals while living in New York. When she and her husband retired, she brought the animals to Mississippi.
“They’re so soft,” said Mary Ann Stroka. “Alpaca hair is ten times softer than wool and three times warmer.”
A left turn off MS 15 South onto County Road 155 in Stringer will take you to the Stroka Gene-Us Alpaca Farm, owned and operated by Mary Ann Stroka.
Mary Ann Stroka with five of her Great Pyrenees dogs at her Stroka Gene-Us Alpaca Farm in Stringer. The dogs guard the alpacas from predators.
Mary Ann Stroka inside the gift and work shop, where she demonstrates a carder, used to separate the fleece fibers sheared from the alpacas. She dyed the fibers she holds.
Mary Ann Stroka demonstrates how she spins fleece fibers from her alpacas into yarn. “It’s calming,” said Stroka. “You get into a rhythm. The whole process takes about nine hours, so you do it because you love it, certainly not for the money.”
Plush toys made from alpaca fleece at the Stroka-Gene-Us Alpaca Farm in Stringer.
Visitors to the Stroka-Gene-Us Alpaca Farm in Stringer, learn about alpacas, watch yarn created from alpaca fleece or take a spinning class.
Alpaca yarn.
Dryer balls made from alpaca fleece. Alpaca fleece is naturally hypoallergenic and water resistant.
Yards of yarn made from alpaca fleece at the Stroka-Gene-Us Alpaca Farm in Stringer.
In just one brutal month’s time, the delta variant of COVID-19 accounted for one-fifth of the state of Mississippi’s total cases since the pandemic began and killed nearly 1,000 Mississippians.
During the month of August, the virus decimated the state’s hospital system, demoralized already weary frontline workers, and disrupted school for nearly every student and parent in the state.
Mississippi, among the least vaccinated states in America, will remember August 2021 as one of the darkest months of the COVID-19 pandemic.
By mid-August, Mississippi was the COVID capital of the world. At one point later in the month, four Mississippi counties claimed spots in the national top 10 list for highest caseload per capita, including the top spot.
The virus spread through the state so completely and violently that several tent hospitals were erected in parking garages during the hottest month of the Mississippi summer. By mid-August, there were no ICU beds available in the entire state, and COVID patients were waiting in full emergency rooms for critical care. To help alleviate the hospital staffing shortage, the Mississippi State Department of Health issued an order to allow EMTs and paramedics to offer care to COVID patients while they waited for bed space.
The state’s healthcare system was so overwhelmed that experts warned the entire hospital network was within days of collapsing. To fend off that collapse, the state had to request that the federal government foot the $8 million-per-week bill for 1,100 contract healthcare workers.
Hospital administrators across the state reported the virus killed numerous pregnant women. Multiple pregnant women on ventilators died of COVID-19 in a Jackson hospital, requiring ICU c-section deliveries to save their babies.
“The seasoned OB-GYNs and critical care specialists said this never happens — never,” said Mark Horne, president of the Mississippi State Medical Association, on Sept. 3.
Multiple Mississippians were hospitalized because they chose to take horse dewormer instead of a safe and effective vaccine, leading the health department to issue dire public pleas for humans to stop taking the animal medicine.
Beds to be used for the COVID-19 field hospital being set up in the basement of UMMC Parking Garage B, Thursday, Aug. 12, 2021. Credit: Vickie D. King/Mississippi Today
Thirteen-year-old Mkayla Robinson, an eighth grader in Smith County, died a couple days after being diagnosed with COVID-19. That tragedy spurred pleas from the state’s largest medical and education groups for a statewide mask mandate in schools, similar to one issued by Gov. Tate Reeves last school year.
Reeves, however, rebuffed those pleas, ensuring Mississippians the days of statewide mandates to stem the spread of the virus were over.
Meanwhile, the swift and uncontrollable outbreaks of the virus inside schools caused nearly 15% of Mississippi schoolchildren to quarantine in August — just days after they returned for the fall semester — due to infection or direct exposure. This stirred fear inside classrooms among teachers and students alike.
There was little relief from Reeves, the state’s chief executive and top manager of the state’s pandemic response efforts. The governor remained steadfast in his refusal to say, without equivocation, that every eligible Mississippian should get a vaccine despite the fact that Republican governors in neighboring states offered clear and concise encouragement for their residents to get the shot.
Reeves was blistered by hospital executives and school leaders for his inconsistent COVID policies. He directly countered advice from the state’s top doctors, he placated those who refused to get the vaccine, and he uttered jaw-dropping comments about the pandemic.
Reeves countered the medical advice of Dr. Thomas Dobbs, the state health officer, saying that there was not much reason for people who are vaccinated to wear masks. He said that a reporter who wore a mask inside a governor’s press conference was “virtue signaling,” and he falsely claimed that the press had fabricated reports of his response to the pandemic.
At a Republican fundraiser in Memphis in mid-August, Reeves said that Mississippians aren’t as scared of COVID as other Americans because they believe they’ll go to heaven when they die.
“When you believe in eternal life, when you believe that living on this earth is but a blip on the screen, then you don’t have to be so scared of things,” Reeves said, neglecting to mention any of the Mississippians who had died from COVID in August — 984 by month’s end — or their families.
Now one week into September, there is reason for cautious optimism. Cases and hospitalizations are trending sharply downward.
Light at the end of the tunnel?
Please stay safe. Health system still overburdened. And sadly, many more will die unnecessarily. pic.twitter.com/UBefdnUu2W
Mississippi’s seven-day average of new COVID cases has dropped nearly one-third from August’s peak. Hospitalizations have seen a more modest decrease — just over 16% from their peak — but these trends are naturally out of sync. It takes time for trends in caseloads to be reflected in hospitalizations and then deaths.
Another promising sign is Mississippi’s declining prominence among the most infectious counties in America. Just two weeks ago, Mississippi claimed four spots on the national top 10 list for highest caseload per capita, including the top spot. Now it only has one — Wayne County — sitting at No. 10. During that same period, Mississippi went from having the highest infection rate per capita of any state to the fourth-highest.
While the downward trend is welcomed, medical professionals are urging Mississippians to get the vaccine and remain vigilant.
“We can’t let our guard down,” Dobbs said during a press conference last week. “We’ve got a lot more coronavirus to go through before we can get back to where we were previously.”
Some observations from the first big weekend of college football:
Rick Cleveland
The best team in Mississippi, clearly, is Ole Miss. In a 43-24 trouncing of Louisville — it really wasn’t that close — the Rebels won every phase of the game decisively. We knew Ole Miss would be an offensive juggernaut. What we learned Monday night is that the Rebels are remarkably improved on the defense. They played harder, stronger and faster than they have in recent seasons. Mostly, they tackled better, especially transfer linebacker Chance Campbell. We’ll get to him later.
Mississippi State? The Bulldogs played for one quarter the way Ole Miss played for four. And that was enough for a 35-34 victory over Louisiana Tech. Down 31-10 entering the fourth quarter, the Bulldogs produced the largest comeback in MSU history, which is to say 126 years. It was a strange game. The Bulldogs led 14-0, fell behind 34-14 and then scored the game’s last 21 points. Postgame, Mike Leach was particularly candid, saying his offense was “shamelessly lethargic” at times and that the defense “played like a bunch of slugs” until rising up in the fourth quarter. Can’t argue that, but there is a bottom line: State won and defeated what the future will show was a really good Louisiana Tech team. State won despite losing the turnovers 6-2. Teams very rarely win when minus-4 in that department.
Southern Miss? The Golden Eagles started the Will Hall era by taking an early 7-0 lead over South Alabama, then played poorly the rest of the game in a deflating 31-7 defeat. A veteran offensive line was supposed to be the USM’s strength but could do nothing with South Alabama’s defensive front. The Southern Miss defense was outstanding against the run, but for the second straight season South Alabama wide receiver Jalen Tolbert was by far the best player on the field. Remember that name. You’ll be watching Tolbert, a former two-star recruit, in the NFL for years. Even when double-covered, Tolbert got open and made big plays that Southern Miss could not answer.
Jackson State? Deion Sanders’ team won its first fall football game 7-6 over Florida A&M at Miami on Sunday. Big picture: The Tigers were victorious in a hard-fought conference game nationally televised by ESPN2. The devil is in the details. There was no flow to the game, which was marred by 20 penalties, many of the pre-snap variety. That part was ugly. Both teams have much to fix. Despite all the penalties the game’s biggest mistake was made by ESPN2. How could you televise a Florida-A&M vs. Jackson State game and not show the two fabulous bands at halftime? Bad, bad mistake there. Inexcusable, really.
So, let’s get back to Chance Campbell, the graduate transfer from Maryland, who appears to be a real difference-maker for the Ole Miss defense. Over the last three or four seasons of watching Ole Miss football, the most asked question has been: Where are the linebackers? Campbell was front and center on play after play Monday night. He’s big (6-2, 240), fast for that size and instinctive. Rebels defensive coordinator D.J. Durkin knew what he was getting in Campbell because he recruited him to Maryland, where Campbell was the second leading tackler in the Big Ten last year. He can play. So can Ashanti Cistrunk, the junior from Louisville (the Mississippi one).
The only Rebel who might have hit harder that Campbell and Cistrunk was running back Snoop Conner, who trucked one unfortunate Louisville defender and ran through the grasps of several others. I’ve written this before, but I firmly believe Conner will play far beyond his Ole Miss days. His size/speed/strength combination is rare. Ole Miss has so many offensive weapons that Conner often gets lost in the shuffle. That won’t always be the case. It wasn’t Monday night.
“The best way out of difficulty is through it.” Will Rogers, the famous American humorist/writer (not the State quarterback) said that. However, the wise saying applies nicely to Rogers, the quarterback, in Saturday’s comeback victory. Rogers threw a pick-six interception late in the third quarter that put State behind 31-14. He was sacked three times and hurried many others. Thing is, he persevered, fought through it, and threw three touchdowns, including the game-winner. He’s a tough kid, a winner. He fits nicely in Leach’s offense as his 39 completions in 47 attempts will attest.
Best news for USM football fans from Saturday night’s disappointment? The school of Ray Guy and Jerrell Wilson appears to have a quality punter again. Gulf Coast Community College transfer Mason Hunt punted eight times for a 48-yard average with no return yardage. But even that comes with some bad news: If the Eagle offense doesn’t improve dramatically, he is going to be one of the busiest punters in the country.
Republican House Speaker Philip Gunn wants a state tax overhaul, including elimination of the personal income tax and increases to sales and other taxes.
Republican Lt. Gov. Delbert Hosemann wants lawmakers to consider a state health care fix, which — although he is loathe to even utter the term — would most assuredly include some form of Medicaid expansion with federal dollars.
Each appears disinterested in, if not outright opposed to, the other’s initiative.
Both proposals are subject of much fear and loathing among state lawmakers, other elected leaders and policy wonks. Both could be subject to Gov. Tate Reeves’ veto stamp — a high hurdle to overcome. And both have ardent supporters and detractors among the citizenry and industrial complex. Both could possibly be taken out of the hands of lawmakers by voters, should lawmakers ever get off their duffs and reinstate the ballot initiative process the Supreme Court laid waste to this year.
Could there be room for some good, old-fashioned political horse trading at the Capitol on these two supercharged issues?
Possibly. It depends on a lot of ifs, what-ifs and leadership. We should know more after some Senate hearings on “health care delivery” (don’t call it Medicaid expansion) allegedly planned for sometime in September.
For starters, Hosemann would have to come out a lot stronger for health care reform (don’t call it Medicaid expansion). He’s said he’s open to it, wants to study it and “everything is on the table” and said that people shouldn’t get hung up on “monikers” such as Medicaid expansion (although he wouldn’t utter those words even when he said this). But he’s stopped short of outright publicly endorsing expansion.
His strongest verbiage to date perhaps came at this year’s Neshoba County Fair, when he said: “We are working on making healthcare more accessible and affordable in Mississippi. The time for simply saying ‘no’ to our options for working Mississippians has passed. When a cancer diagnosis can bankrupt a family, we have a responsibility to help. Further, no Mississippian should be further than 30 minutes from an emergency room.
“This fall, the Senate will hold hearings and dig deeper into the delivery of healthcare in our state. From managed care, to scope of practice issues, to insurance options, everything is on the table.”
Hosemann would have to come out much stronger pushing what has been a Republican bugaboo in Mississippi. He would have the backing of hospitals and other groups. He might wind up with the backing of state business leaders through the Mississippi Economic Council. MEC has said it’s in the process of polling its membership on Medicaid expansion, but results are still pending. Another big what-if.
As for Gunn, he’s been pretty staunchly opposed to Medicaid expansion, and ostensibly has higher political ambitions for which such a measure could be an anvil necklace in a GOP primary.
All jesting aside, leaders would have to come up with a program that provides some political cover for rock-ribbed Republicans, and they would have to call it something other than Medicaid expansion.
Gunn really, really wants his tax reform plan. He’s called it the most important policy proposal of his career. Would he be willing to consider health care reform in exchange, particularly if the business community gets behind it? Of course, lawmakers are constitutionally not supposed to do such trading, but the realpolitik is it happens often.
Should the House and Senate leadership come to terms on tax and Medicaid proposals, then would come the heavy lift: Getting a veto-proof majority of two-thirds of lawmakers to sign on.
Gov. Reeves has again and again and again vowed opposition to any form of Medicaid expansion, which he calls “Obamacare expansion.” He’s also vowed opposition to any tax deal (he supports just getting rid of income taxes) that includes a “tax swap,” increasing any taxes to make up for cuts.
Reeves would likely not be a party to or facilitator of any legislative negotiations on such proposals. Negotiations and facilitating negotiations are not his thing, and his relationship with the Legislature cannot really be called a relationship. He’s either fer something or agin’ it, and he’s usually agin’ most things proposed by others.
The bottom line: As leaders ponder the many what-ifs, two of the most monumental policy issues before lawmakers in recent history hang in the balance.
In the last three months on record, Mississippi has gained nearly 15,000 jobs, pushing the state’s number of working residents closer to where it was before the pandemic.
The Magnolia State has recouped nearly 83% of the jobs it lost at the onset of the pandemic in 2020. Jobs in manufacturing, trade and trucking, construction and the service industry brought back the most positions in recent months. But the “normal” Mississippi is approaching in terms of workforce is still behind the rest of the nation in terms of wages and general worker participation.
For Labor Day, Mississippi Today took a close look at the data from the Bureau of Labor Statistics to not only measure the ground the state has gained back since the pandemic began, but also what it will take to move the state and its average wages forward.
“Some jobs are being filled, and it’s good to see pre-pandemic type numbers,” said Ryan Miller, the director of workforce development office Accelerate Mississippi. “But it’s also an honest and real assessment to say we are not where we want to be.”
With a 55.9% labor participation rate, Mississippi’s number of residents actively working or seeking work is about where it was before the pandemic. But that rate still leaves Mississippi in nearly last place for labor participation in the country, according to the latest data from July. The state’s average individual income was only $24,509 in 2019, according to the Census Bureau.
Still, the state has steadily added new jobs at a higher rate than the national average since the beginning of the pandemic. Mississippi had 41,000 more jobs in the state this July than it did in the July prior.
“We’re getting closer to where we were before the pandemic,” said state economist Corey Miller. “It’s been a good turnaround when you look at how steep the job losses were in just two months last year.”
As two of Mississippi’s larger job sectors, both manufacturing and transportation, trade and utilities have added almost 14,000 jobs collectively in the last 12 months. Both categories also had the largest gains in July, the most recent month of data available for Mississippi.
Scott Kilpatrick, interim director of the University of Mississippi’s Center for Manufacturing Excellence, said his graduates in the spring of 2020 had a hard time landing jobs when school ended.
Typically, placements for students who graduate from the program are near 100%, he said. After a few months, hiring began to settle into more of an equilibrium.
“Customer demands seem to be really strong,” he said. “The issues (manufacturers) are facing have been related to supply chains and also with manpower in terms of a skilled labor force.”
The shortage of computer chips, for example, has stalled out Toyota’s Mississippi factory in Blue Springs. While the Japan-based automaker didn’t lay off any of its U.S. workers, it recently had no-production days in which workers took time off or conducted jobs in the factory unrelated to car making.
Despite the challenges, Mississippi manufacturers added 1,100 jobs in July alone.
The sector including trade, transportation and utilities covers a large array of jobs from commercial trucking to air conditioning repair services. But with the growth of online shopping and delivery, the demand for truckers and jobs in delivery logistics has only been heightened.
Mississippi was already short on drivers; COVID-19 only exacerbated those needs.
“Most drivers stayed on the road” after the start of the pandemic, said Mississippi Trucking Association President Hal Miller. “But it was hard to draw new people into the industry. Most trucking companies are still in hiring mode to maintain the pace they have right now.”
The average age of truckers trends on the older side, and they’re aging out of their positions, he said.
“These guys are making big money, too,” Hal Miller said. “Right off the bat making $80,000 a year.”
But the trucking association president said Mississippi needs to do more in general to show students the vocational options out there with high-paying salaries. He lauded Arkansas and South Carolina for creating a traveling exhibition to teach high school students and others about the types of trucking, vocational, and tech jobs that pay well following short-term vocational training.
The new workforce development director agrees.
“So much in what we are finding in Mississippi is people just don’t know what’s out there,” Ryan Miller said. “People don’t know about opportunities right there or what programs are available to get them to that high-paying job.”
Outside of the vocational field, Mississippi has added back 12,900 service industry jobs in the past 12 months.
But the service industry is still where the most job losses are relative to before the pandemic.
The state economist Corey Miller wonders if those jobs will ever come back and how many of those workers have begun seeking out — or already found — higher paying jobs. Across all industries, University Research Center has forecasted strong wage growth in Mississippi over the next two years.
The center, which houses the state economist, also predicts the state’s economy entering 2022 to be stronger than it was the prior year.
But it’s ultimately getting more Mississippians into higher paying, in-demand jobs that will make the biggest impact on the state’s economic outlook over the next few years.
Mississippi Today reporters Geoff Pender and Bobby Harrison join Adam Ganucheau to discuss Mississippi lawmakers’ two-day hearings, when experts talked about the pros and cons of cutting the state’s income tax and raising other taxes.
Adam Ganucheau: Welcome to The Other Side, Mississippi Today’s political podcast. I’m your host, Adam Ganucheau. The Other Side lets you hear directly from the most connected players and observers across the spectrum of politics in Mississippi. From breaking news to political strategy to interviews with candidates and elected officials, we’ll bring you facts, perspectives and context that helps you cut through the noise and understand all sides of the story.
Joining us today are my colleagues, Geoff Pender and Bobby Harrison. Hey y’all, how you doing?
Bobby Harrison: All right. How y’all doing?
Geoff Pender: Hey Adam. Hey Bobby.
Adam Ganucheau: Thanks for being here. Look, I think the last time we got together we sort of talked about how we knew that there were some hearings on Mississippi’s tax code coming up basically.
And that has happened. And I thought that today might be a good chance to talk about it. I know that tax policy isn’t always the most sexy topic to discuss, but I think all three of us would agree that what’s being discussed at the Capitol right now has the ability to truly change the future, financial viability and sort of the future state budget for years and years to come.
So I want to jump into this .You know, I guess, just to recap very briefly to how we got here, in the 2021 session House Speaker, Philip Gunn had this idea. He’s had this idea for several years to fully eliminate individual income tax. And in order to do that, that makes up close to I think one third of the state’s general fund revenue every year.
So a third of the money that we make every year to spend on basic public services comes from the collections of individual income taxes. What Gunn wanted to do in order to sort of fill the void that cutting individual income taxes would leave in the revenue, he wants to increase other taxes, including the sales tax, including some other consumption taxes.
You know, there’s there’s a litany of those, and we can get into that. And honestly, we might not even need to. So when the House passed Gunn’s plan in 2021 session, the Senate didn’t take it up. They weren’t ready. They thought it was rushed. They were seemingly kind of caught off guard by the House passing this proposal.
So what they said in the 2021 session was, “We’re going to study this this fall.” So Geoff, last week you covered the two days of hearings that ended up being this sort of Senate ” study session,” if you will. The headline on your analysis following these two days of hearings I think is just so great, and I think it’s a good jumping off point for you to start talking about is: “Who will lawmakers listen to on taxes: Grover Norquist or Mississippi business leaders?” Geoff, it was an interesting couple of days for sure as you wrote about interesting list of “experts” to talk about everything and for lawmakers on both sides of the aisle to listen to. Tell us about those two days of hearings.
Geoff Pender: Sure. Like you mentioned, these were originally going to be Senate hearings mainly because the House didn’t want to participate after the Senate didn’t take up its plan, but these were going to be Senate hearings broadly on tax policy, broadly on revenue, and instead they kind of morphed into a first off a joint committee eight members each from the House and the Senate. And it became more of a trial litigating Philip Gunn’s plan than it was just a broad tax policy study, so it was really interesting. Both sides, the House and the Senate, sort of each got to pick their experts who testified.
And like I said, it became sort of a trial on Philip Gunn’s tax plan.
Adam Ganucheau: On Philip Gunn’s tax plan, you’ve written about how there doesn’t seem to be really any specific support from any group. I mean, maybe a couple here and there to fully endorse his plan at least. I think there are aspects of it, which is to be fair, a very broad ranging plan that they passed in 2021. But you’ve written all about how it doesn’t seem to have much support.
Geoff Pender: In state. Now it’s gotten some support from a, I guess you would say, some support in theory from some national conservative tax think tanks, and their policy is in general, that consumption taxes are better than income taxes, that they’re flatter or fairer or whatnot. As far as Mississippi groups— and Philip Gunn has traveled the state and talked with a lot of people— there are very few if any Mississippi groups that have just fully endorsed his plans. Some say they in general endorse the concept, but yeah, he’s had trouble getting any actual buy in of his plan, and he’s actually run into some opposition or at the least some real skepticism about his plan.
One group where that’s been seen is some of our business leaders. We saw in these hearings that they appear to be pretty if not outright opposed, they’re pretty skeptical and really fearful of this plan, you know, what a sea change like that could do to our budget and our state economy.
Adam Ganucheau: I want to really quickly read a quote from from Scott Waller who is the head of the Mississippi Economic Council, which is effectively the state’s chamber of commerce. He was one of the invited sort of folks to testify during these hearings, and I wasn’t able to watch this day of hearings live, but Geoff, when I was reading your story before we published it, it was just, I mean, it’s a strong quote here.
Kind of talking about the budget, generally speaking, and you know, all these other needs that we have, Scott Waller, who kind of represents some of the most powerful, successful business people in Mississippi, didn’t really mince words about Gunn’s plan. Here’s the quote, “Where is this in the priorities we have, “Waller said. “We’ve been on the road holding 39 meetings with members all across the state. I know you don’t want to hear this, Mr. Speaker, but this issue has not come up a single time as a priority, something we want to do.” For Scott Waller to say that in this hearing, that is not nothing. I mean, that is a direct sort of counter to the whole purpose of this moment for Gunn, at least from his perspective. Bobby, I’m hoping that you can explain to us why this is such a big deal.
I mean, you know, this proposal that Gunn has laid out and that the House passed earlier this year like Geoff just said it really would be a sea change in sort of how we collect taxes in Mississippi and how we can, you know, work budgets moving forward in the future. So just kind of give us a little bit of context about what this would mean and why this is an important debate right now.
Bobby Harrison: Yeah, there’s a lot going on here.
First of all, we can’t miss in this whole debate that actually Governor Tate Reeves has his own plan, and his plan is just to eliminate, phase out the income tax. Essentially one third is state revenue that you talked about Adam, and his plan is not to raise any other taxes just to phase out the income tax.
So that’s going on and what both plans have in common is the elimination of the income tax. And in Mississippi, that’s a big deal for a number of reasons. First of all, we’re the poorest state in the nation. At the same time, our tax system is regressive, meaning that poor people pay more and a greater share of their income in taxes than do the more fluent people.
And the income tax is the one tax that we have in this state where more fluent people pay more than less wealthy people, and not a lot more, but a little bit more. And if we eliminate the income tax, it’s just going to put more of the tax burden on low and middle income people. I mean, there are studies that show that and plus it’s just common sense. You know, because essentially the speaker’s plan through the first several years actually produces more revenue than it takes away because you raise the sales tax and most excise and consumption taxes by 2.5%, so that’s gonna put more of the burden on the poor and the less fortunate. That was not talked about a lot during the hearings. Actually, state economist Corey Miller talked about it a little bit.
He said one of the tenants of a good tax system is tax fairness. And he said that the consumption taxes, sales taxes are regressive taxes and the income tax, generally, it’s not a regressive tax. But most of the folks that Geoff referenced, the conservative think tanks from out of state and and some business leaders from in-state too, most were against it, but there were some people who spoke in favor of it.
They expressed less concern about how it was gonna impact the poor and the middle-class, but they were more concerned that there’s going to be a two, two and a half cent increase on their taxes. So this is going to be a big deal if it goes through. I think it’s going to be difficult. I think that there’s going to be a lot of different proposals out there when everything is said and done, and I don’t know if they can get a three-fifths vote on it, which it takes to to pass a tax increase. We’ll have to see, but it’s going to be a big deal during the 2022 session, I think whether it passes in the House.
Adam Ganucheau: Bobby, you’ve written about how, you know, talking about sort of the, the tax burden and how it would shift to, you know, people who aren’t as wealthy because they’d have to pay more of a percentage in sales taxes as they would income. You’ve written about how that disproportionately affects people of color in Mississippi as well.
Bobby Harrison: That’s just common sense again, cause we have, you know, there’s poor Mississippians, black, white, and and different races and ethnicities.
But I mean, we have more poor black people than poor white people. I mean, at least percentage wise. So, I mean, it just makes sense it’s gonna impact those people more. And, I just, you know, I do fear that that’s not being talked about enough. And in fairness to the speaker, he did try to address it to a certain extent.
We have the highest state imposed sales tax on groceries in the nation, which is the, probably the most regressive of all taxes, you know, because you know, to be taxing food and stuff like milk and those types of items, and his proposal will cut that sales tax, which is 7% now in half over a period of years.
So, I mean give him a little credit for that. He made an effort, but studies still show that even after that sales tax on groceries goes into effect that it still is overall tax policy, if the speaker’s proposal passes, that puts more of a burden on the middle class and lower income Mississippians.
Adam Ganucheau: Another big group of Mississippians who’ve been talked about as it comes to this point as retirees. Retirees don’t currently pay income taxes. So the argument against this would be, they’re already kind of getting a break by not having to pay income taxes. So what you’re really doing, if Gunn’s plan were to pass, is you’re increasing retirees’ sales taxes without giving them another break anywhere else, so really their taxes would be going up.
That’s at least the argument that’s being made. In these hearings, it was made by a senior Republican Senator John Polk from Hattiesburg. His quote was, “My seniors who are retired they don’t pay income taxes, and they will pay a 36% increase in sales taxes. How do I get reelected, if I tell them I support this? So I’d be saying, here’s the bus you can get in front of me. I’m about to throw you under it.” Another very strong quote, sort of in direct opposition to Gunn’s plan here. Geoff, I’ll ask you this in closing, after sitting through these hearings and covering them and talking to folks during and after, what do you make of the speaker’s chances, the speaker’s plans, chances moving forward? I mean, post hearings, and as we’re looking ahead to the 2022 regular legislative session, what do you make of chances of this thing going anywhere?
Geoff Pender: I think number one, I think his plan in toto, I don’t foresee that passing. There’s too much. We just rattled off numerous groups that are either skeptical or opposed to it. And I mean, keep in mind, manufacturers. They’ve got that fear of tax pyramiding, where they’re getting hit with sales tax when they go buy raw materials or commodities to make their widgets, then taxed again on equipment, then they have to pass on tax again when it sells.
So I mean, those are all pretty powerful groups, including retirees, and again, teamed up with advocates for the poor and the poorest state in the union. What I think is far more likely than Gunn’s total plan passing is an income tax cut.
Either they start taking a bite out of the 4% bracket. Right now we have a 4% and a 5%. We did away with the lowest in the process of it. But I think it’s far more light
Bobby Harrison: It has not phased out yet.
Geoff Pender: I think it will be by next year. Far more likely they’re going to do an income tax cut. Now whether they do that in a phase out of the 4% or if it’s a one-time flat cut, I suspect there will be some talk of at least calling it a phase out. But as far as the swap, which Philip Gunn keeps saying, “Now don’t call it a tax swap,” but I just don’t see the full plan passing. I think it’s way more likely. Now there is appetite for an income tax cut or a tax cut given the state’s finances right now way above projections. I would almost guarantee we’ll see some, some sort of tax cut, but don’t see the plan.
Adam Ganucheau: Bobby. Do you agree?
Bobby Harrison: Yeah. And I don’t think it’s a bad deal, a bad plan to do a study of the state’s tax system. I think that was, you know, that was actually a good thought. Now, you could argue that the people they brought in for that study, were kind of slanted one way.
All, most of them, were opposed to the income tax and supported the consumption and sales taxes, but there’s a lot of things. Look, you know, y’all been talking about retirees. Now, I mean, I would argue that, you know, that a retiree you making $100,000 a year, and they’re out there, you know, they might be in a better place to pay some income tax, some state income tax than somebody making $40,000 a year with two kids.
And so, I think those are some of the things that, you know, would be nice to look at. I mean, I’m not saying tax all retirees, but I mean, but there’s wealthy retirees out there, and I hope to be one of them one day. Probably won’t be, but there’s wealthy retirees out there that can afford to pay taxes more than a family of four earning $40- 50,000 a year and having to put a couple of kids through school and pay for college and all those things. So, I mean, I think there’s a lot of things like that they could look at, but—
Geoff Pender: I’m going to go out on a limb and predict that does not get looked at very closely.
Bobby Harrison: Well the fact that it is not looked at doesn’t mean that we should not point it out that that might be an inequity in the tax system. And you know, there’s no greater inequity I think than the grocery tax. And so, you know, whether they will look at that or not, I don’t know. Mississippi loves its sales tax.
I mean, you know, we talked about the income tax being about a third of the state revenue, a little bit less than a third. You know, the sales tax and other consumption taxes, excise taxes and stuff, already makes up about 38% of the overall state revenue, so Mississippi is already heavily dependent on its sales tax.
And, you know, maybe we should look at some areas there. Will we? Geoff’s right, probably not, but I think part of our job is to just point out different options out there and see what legislators do about them.
Adam Ganucheau: Sure. Well, y’all both have been all over this, and it’s certainly helpful to hear your perspectives on it. Geoff, your analysis like I said, if anybody wants to go read, that headline, like I said, is: “Who will lawmakers listen to on taxes Grover Norquist or Mississippi business leaders?” That posted on August 31st of this year. If you have listened to this episode, and you’re still wanting to hear more about all this, I’d encourage you to scroll back in our podcast list. I think it’s about 24, 25 episodes ago published on February 28th of this year. I sat down with Speaker Gunn and asked him all about his plan and what he wants to do. So if you want to hear more about that, you can. And I mean, Geoff, Bobby y’all will continue covering this closely and looking forward to it and thank you all so much for everything.
Bobby Harrison: Thanks guys.
Geoff Pender: Thanks.
Adam Ganucheau: As we cover the biggest political stories in this state, you don’t want to miss an episode of The Other Side. We’ll bring you more reporting from every corner of the state, sharing the voices of Mississippians and how they’re impacted by the news. So, what do we need from you, the listener? We need your feedback and support.
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Subscribe to our weekly podcast on your favorite podcast app or stream episodes online at MississippiToday.org/the-other-side. For the Mississippi Today team, I’m Adam Ganucheau. The Other Side is produced by Mississippi Today and engineered by Blue Sky Studios. We hope you’ll join us for our next episode.
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