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House and Senate leaders reached agreement Saturday afternoon on a proposal that falls short of eliminating the income tax as Speaker Philip Gunn and Gov. Tate Reeves have demanded, but still provides the largest tax cut in state history.

While the plan does not eliminate the personal income tax as Gunn has tried to do for the past two years, he said the proposal was too good to pass up.

“This is the first step in income tax elimination, but it is a key first step,” said Gunn, adding he would continue to work for total elimination.

READ MORE: Another day, another tax cut proposal in Mississippi Legislature

The plan would immediately eliminate the 4% tax bracket starting in 2023 at a cost of about $185 million to the state budget and then over the next three years step down the remaining tax bracket from 5% to 4%. Under the plan, Gunn said the first $18,000 for a single tax filer will be exempt from taxation and the first $36,000 for a married couple.

The overall cost of the program to the state budget will be about $525 million annually when fully enacted.

“This tax cut is the largest in Mississippi’s history. It is also responsible,” said Lt. Gov. Delbert Hosemann, who presides over the Senate and has led the effort to prevent the complete elimination of the income tax this year.  “Our constituents expect us to fund core government services in infrastructure, education, healthcare, and other areas. Our budget experts have assured us we can continue to do this and significantly ease the tax burden on hard-working Mississippians.”

House and Senate leaders have been at loggerheads about the scope of tax cuts during the 2022 legislative session. Gunn and his leadership team have been adamant that a plan should be passed during the ongoing session that is scheduled to end April 3 to phase out the state’s income tax that accounts for about one-third or nearly $2 billion in general fund revenue.

In recent days, Reeves has chimed in saying he would “do whatever it takes” to ensure that a plan is put in place this year to eliminate the income tax.

Against that backdrop and proclamations by Gunn and Reeves that the income tax elimination needed to be committed to this year, Saturday’s compromise came as a stunner.

“We have been talking about this for awhile,” said Senate Finance Chair Josh Harkins, R-Flowood. “It got to the point where there was a deadline.”

With an 8 p.m. Saturday deadline looming to reach agreement on a tax cut under the legislative rules, House and Senate negotiators announced a meeting Saturday afternoon where they unveiled the four-year plan to cut, but not eliminate the income tax.

The agreement does contain language saying it is the intent of legislators to look at the state’s revenue situation again by 2026 to see if additional tax cuts could be enacted.

House Ways and Means Chair Trey Lamar, R-Senatobia, said if state tax collections continue to grow, legislators could opt to continue cuts in the income tax and that it could be completely eliminated in 10 to 12 years.

But if legislators take no action, the tax rate will remain at 4%.

Gunn said he anticipates the governor will sign the legislation and, like, him continue to work to eliminate the income tax. When the plan is fully phased in, Gunn said Mississippi will have the 5^th lowest marginal rate of the 41 states with a personal income tax.

The House and Senate are expected to vote on the plan as early as Sunday afternoon.

When fully enacted in four years, the plan will provide savings of $417 annually for a single tax filer earning $40,000 and $834 for a married couple earning $80,000, Gunn said.

Harkins called the plan historic. Harkins and Hosemann have opposed efforts to eliminate the personal income tax this year, but proposed cuts.

While the state has experienced unprecedented revenue collections, they pointed out state Economist Corey Miller has said much of that growth has been spurred by $35 billion in federal COVID-19 federal relief funds. They have said they opposed completion elimination during a time of economic uncertainty caused by multiple factors, including supply chain issues, inflation and Russia’s invasion of Ukraine.

Harkins said the issue of income tax elimination or additional cuts in the tax rate could be addressed in future years.

While leaders compromised on the tax cut plan, they still were working during the weekend to reach agreement on a state budget and the expenditure of $1.8 billion in federal COVID-19 relief funds.

Those federal funds are expected to be spent in multiple areas, including helping local governments with water and sewer needs and shoring up state agencies, such as the child foster care system, mental health facilities and prisons – all facing federal lawsuits or the possibility of federal lawsuits because of substandard conditions.

Because of those issues and other issues facing the state, such as the underfunding of education entities, some have argued that the state cannot afford a large tax cut despite the current revenue surplus.

Gunn said he is optimistic that the Legislature can pass a budget by Tuesday, clearing the way for the session to end on time by next weekend.

The post Mississippi lawmakers reach deal to cut, but not eliminate income tax appeared first on Mississippi Today.

We’ve been taking a look back over the last few years of reporting at Mississippi Today in celebration of our 6th anniversary. I wanted to remind you of some popular stories you might remember from 2019 that show how Mississippi Today works to tell your story.

Our coverage of Olecia James not receiving the title of salutatorian at Cleveland Central High School went viral after publishing. James filed a lawsuit against the school district that claimed she was stripped of her salutatorian title due to negligence and skewed grading after East Side High School was merged with Cleveland Central. By not receiving her title, she lost her chance at a scholarship to Ole Miss.

Later in 2019, our photojournalist Eric Shelton captured a day-in-the-life of Kaitlyn Barton, a Clarksdale High School teacher. The result was an insightful look into the challenges teachers in the state face living on their salary. At that time, Barton worked a part-time job in addition to her full-time teaching job to make ends meet. We have been covering teacher pay during the current legislative session, where lawmakers have passed a historic pay raise for Mississippi teachers.

Why do these stories matter? They’re your stories. Our mission is to take the issues that matter to you and hold public officials accountable. Throughout our six years, we have told a lot of your stories, but the work is far from over.

To our current members: Your generous support allows us to continue this important work and for that, we thank you.

To our readers who are not yet members: Since we are a nonprofit, our newsroom relies on members and donors to help power our work. You can be a part of our passionate member community by creating a recurring donation today. To celebrate our 6th anniversary, our goal is to welcome 60 new members during our 6 days looking back at our top stories. Will you help us reach our goal?

The post Mississippi Today tells your story appeared first on Mississippi Today.

Former President Bill Clinton will be among the speakers May 3 in a ceremony at the Two Mississippi Museums in Jackson honoring the lives of former Gov. William Winter and First Lady Elise Winter.

Clinton’s tenure as Arkansas governor overlapped with Winter’s term as governor of Mississippi from 1980 until 84. And as president, Clinton appointed Winter to co-chair his Initiative on Race that dealt with the issue of racial reconciliation. The William Winter Institute of Racial Reconciliation, now the Alluvial Collective, also was created at the University of Mississippi.

Also speaking at the event sponsored by the Foundation for Mississippi History will be Reuben Anderson, the state’s first African American Supreme Court justice, and former Mississippi Gov. Haley Barbour.

Winter died in December 2020 at the age of 97 and the former first lady died in July 2021 at the age of 95. Because of the COVID-19 pandemic, there was no public service upon their deaths. The May event will be the first.

After his death, Mississippi Today posted a “homily” by Rob Lowry, the former pastor of Fondren Presbyterian Church in Jackson where the Winter’s were members, honoring the former governor and outlining what he would have said if there had been a service.

Lowry wrote, “Governor Winter was a kind of public servant almost entirely absent on the scene today. He led with a passion for justice and a compassion for his neighbor that was born not of selfish ambition but a sense of responsibility and a profound belief in the promise and possibility of a better tomorrow. Acutely aware of the advantages his hard work and education had earned, he set about to work for the betterment of his home state. That commitment to leave Mississippi better than he found it was the cornerstone of a public life that helped shape our state for half of one century and into the next.”

Winter steered the Education Reform Act of 1982 to passage in an improbable special legislative session right before Christmas, creating public kindergartens among other education changes.

Elise Winter also was active in public service, working with her husband on education issues as first lady and to improve the conditions at Parchman Penitentiary. She was active in Habitat for Humanity and on other issues.

William Winter was a long-time member of the state’s Archives and History Board and, along, with Anderson, who is a member, led the effort to develop the state’s Two Mississippi Museums – the museum of history and of civil rights. He also was critical in the decision of Myrlie Evers to donate to the state the papers of her and her late husband, Civil Rights leader Medgar Evers, who was assassinated outside his Jackson home in 1963.

During the administration of Barbour from 2004 until 2012, Winter and Anderson worked with the then-governor to garner state funding for the Two Mississippi Museums project that has received national praise.

“These museums stand at the intersection of William Winter’s greatest passions—history, education, and racial justice,” MDAH Director Katie Blount said, “Generations of young people will come here to experience the stories that have shaped our state and nation.”

Winter had a long career in politics, serving in multiple statewide offices, and he also served in the Legislature.

The post Bill Clinton to speak at ceremony honoring Winters at Two Mississippi Museums appeared first on Mississippi Today.

Mississippi Today is getting ready to celebrate our 6th anniversary this Monday. As the resident sports columnist, I report on the compelling stories of Mississippi athletics, an important part of our state’s culture. Mississippi has a fascinating history of producing many of the world’s greatest athletes. I strive to bring to our readers the stories of those sports heroes and the games they play by going behind the scenes to find the stories behind the stories.

One of my favorite stories back in 2018 did just that. About a month before that hair-raising Super Bowl featuring the Eagles and Patriots, I had the chance to speak with Larry Foles, native of Petal and father of that year’s Super Bowl Champion quarterback Nick Foles. I found a lot of Larry’s rags-to-riches story reflected in Nick’s. Like so many Mississippians, Larry emerged from humble beginnings and developed grit, determination and leadership skills his son seemingly took to heart and utilized for success on sports’ biggest stage.

Stories like this one are uniquely Mississippi and help show the rest of the world why Mississippians excel as they do in football, basketball, baseball and Olympic sports. It has been my life’s work to tell these stories. It never gets old.

To our current members: By donating to our newsroom, you are part of a large group of supporters dedicated to a better Mississippi. We thank you for being a part of our mission. Our work is not possible without you.

To our readers who are not yet members: As a nonprofit organization, we rely solely on the support from our members and generous donors. Your donation goes toward essential functions to keep our newsroom running. Quite literally, we would not exist without you. We hope you’ll consider joining our passionate member community by making a donation in celebration of our 6th anniversary.

The post Mississippi Today and six years of sports appeared first on Mississippi Today.

Speaker Philip Gunn and House leaders on Friday — the day before lawmakers’ deadline to agree on broad strokes of a state budget — signed off on Gov. Tate Reeves’ latest proposal to eliminate Mississippi’s personal income tax.

“This makes six different proposals we have sent to the Senate to eliminate the income tax,” Gunn said Friday. “… We are collecting more money than we are spending from our citizens. We believe it’s time to give money back to our citizens.”

Lt. Gov. Delbert Hosemann, who presides over the Senate, said, “I’ve lost count of their plans. At one time they were raising (sales) taxes by 2.5%. Then they were raising them 1.5%. Then they weren’t raising taxes. Then we’re doing $100 million a year. Now we’re doing what the governor says … There is a reasonable way to go about this, cutting taxes … We don’t want to come back to taxpayers in two or three years and say, ‘Oops.’”

The long-running tax cut fight between the Republican House and Senate leadership dominated a joint meeting Friday to ratify an estimate of how much money lawmakers have to spend. They have a Saturday night deadline to agree on a state budget for the new fiscal year that starts July 1.

Gunn since last year has pushed to eliminate, not just cut, the state personal income tax even if it takes years to phase it out. Hosemann and his Senate leadership propose cuts to income and other taxes this year, but say it’s not prudent to eliminate one-third of the state’s revenue and upend tax structure during uncertain economic times.

“We’re in the Senate for eliminating all taxes,” Hosemann said. “… But I remember Jimmy Carter. I remember the ’70s and ’80s … 20% interest rates and recessions … We asked (the state economist) where we’ll be in two years. He doesn’t know. It’s clear to me, with all due respect, that nobody but God knows … He also acknowledged there’s a 35% chance of a recession. We need to get through the next three or four years and see where we are.

“… We have schools that need repair,” Hosemann said. “We have roads and bridges and water and sewer work that needs to be done.”

Gunn said the he and House leaders have tried to address all concerns about income tax elimination and sent over multiple proposals, last year and this year. He said the state economy is booming and government coffers are full, and he expects economic growth to continue.

“I’d like to bring up another number: zero,” Gunn said. “That’s the number of reasons left why we can’t do income tax elimination.”

READ MORE: Gov. Tate Reeves jumps into bitter Capitol income tax fight

Gunn said House leaders on Friday were sending yet another proposal — one proffered by Gov. Tate Reeves — to the Senate. It would cut the state’s marginal personal income tax rate from 5% to 3.5% in the coming year, then phase out the tax over the next seven years.

Reeves vowed: “We are going to eliminate the income tax in Mississippi.”

On Thursday, after Reeves announced his tax elimination proposal, Gunn had responded: “Here we are two days before deadline and we see the first proposal from the governor. My question is, where are his votes? The Senate has been resistant to any proposal.”

But on Friday, Gunn said lead House tax negotiators were drafting a proposal containing the governor’s plan, signing it and sending it to the Senate. On Wednesday, House leaders had signed and sent to the Senate a much scaled back proposal that would have eliminated the income tax over 18-20 years.

Hosemann, Gunn and the Joint Legislative Budget Committee met Friday, and after much debate and questioning the state economist whether the national and state economies are on shaky or solid ground, revised revenue estimates for the current state budget year ending in June and the coming one.

The committee raised the current fiscal year estimate from $5.9 billion to nearly $6.9 billion. For the coming budget year, the estimated was raised to $6.9 billion, up about $112 million from the previous estimate.

Gunn said next year’s estimate was low-balled, and the state will take in much more money.

Hosemann said, “I would have felt more comfortable with a little bit lower.”

The post Another day, another tax cut proposal in Mississippi Legislature appeared first on Mississippi Today.

The post Marshall Ramsey: Gunnbert appeared first on Mississippi Today.

Look who has entered the tax cut fray!

The post Marshall Ramsey: Latecomer appeared first on Mississippi Today.

Just two days before a key legislative deadline, Gov. Tate Reeves confidently stated that lawmakers would vote to eliminate the state income tax that generates about one-third of Mississippi’s general fund revenue.

Reeves, who has little legislative power during the regular session, stopped short of saying that he would call a special session or veto budget bills or other items if legislators do not send him an income tax elimination proposal. But those actions would be the governor’s primary leverage in any battle with lawmakers.

“I am prepared to do whatever it takes to eliminate the income tax in Mississippi,” the first-term Republican governor said. “We are going to work together over the next several days to get this done … We are going to eliminate the income tax in Mississippi.”

Reeves made his declaration Thursday during a press availability in his state Capitol office as legislators prepare to enter key negotiations on developing a budget and finalizing other major proposals. Work is expected to continue on the budget and other key bills through the weekend to meet key deadlines as the session’s scheduled April 3 conclusion nears.

The House has been on board with Reeves’ goal to phase out the income tax. Speaker Philip Gunn has cited the elimination of the income tax as his most important priority and has presented several proposals toward that end.

But Senate leaders, led by Lt. Gov. Delbert Hosemann, have stopped short of complete elimination of the income tax, which is the state’s second largest revenue source. Senate leaders have instead proposed an alternative proposal that merely cuts the income tax and would still be the largest tax cut in state history.

PODCAST: Why Lt. Gov. Delbert Hosemann opposes income tax elimination

Gunn, in an effort to reach a compromise with the Senate on Wednesday, offered his latest proposal to the Senate — a more modest plan to phase out the income tax $100 million per year, meaning it would take 18 years or longer to complete.

“While I appreciate the House’s attempt to get compromise, their plan of $100 million (cut) in year one is way too little, and their 18 years to implement it is way too long,” Reeves said.

Gunn said the plan to phase out the income tax $100 million per year is not what he wants, but that he is trying to reach a compromise with the Senate.

Of Reeves’ proclamation that the income tax elimination proposal would pass this year, Gunn said: “Here we are two days from deadline, and we see his (Reeves’) first proposal. My question is, ‘Where are his votes?’”

Gunn said he would support the governor calling an immediate special session if a compromise is not reached by this weekend, which is the deadline during the regular session to agree on the issue.

READ MORE: Speaker Philip Gunn scales back his income tax elimination proposal

On Thursday, Reeves proposed cutting the income tax by $600 million during calendar year 2023 by dropping the top marginal rate from 5% to 3.5%. He said that would reduce everyone’s tax liability by about 30%. Under his proposal, the 3.5% marginal rate then would be reduced one-half of a percent per year until it is eliminated. Mississippi currently has three tax rates, though the 3% rate is being phased out under a bill passed in 2016, meaning that there would be a rate of 4% on income above $5,000 and 5% on income above $10,000 minus exemptions. Under Reeves’ plan, there would be only a 3.5% rate as of 2023 that would be reduced one-half percent each year.

Reeves said Mississippi is experiencing unprecedented growth in tax collections. Mississippi’s financial experts, the governor said, are projecting the state will collect about $1.2 billion more in revenue than the $5.8 billion that was budgeted during the 2021 legislative session for the current fiscal year.

“It is time to give that money back to the taxpayers,” Reeves said.

State Economist Corey Miller and others have cited the unprecedented amount of COVID-19 federal relief funds coming into the state as the primary reason for the large surge in revenue collections. He said most other states are experiencing similar tax collection booms.

Because revenue collections are not expected to continue at their current pace, Hosemann said it would be more prudent to look at tax cuts, but not to totally eliminate the income tax.

“The Senate has proposed $439 million in recurring-dollar tax cuts on top of the $235 million ($674 million total) which has yet to be phased in from the 2016 cuts,” Hosemann said in a recent statement. “This is a conservative plan to return money to taxpayers. During the many hours we have spent with the House on this issue, we have not said we do not support ever eliminating the income tax in Mississippi.

“We can address further cuts at any time,” Hosemann continued. “Taxpayers expect us to be responsible stewards of tax dollars. The Senate’s plan includes cutting taxes and taking care of core government services — not gutting them.”

Past proposals from both the House and Senate also have cut the 7% grocery tax, which is the largest state-imposed tax on food in the nation. Reeves has not advocated cutting the grocery tax, but said he would not oppose it as long as the income tax is eliminated in the process.

READ MORE: Cities, counties urge lawmakers to approve federal stimulus spending amid tax cut standoff

The post Gov. Tate Reeves jumps into bitter Capitol income tax fight appeared first on Mississippi Today.

After a state senator asked for an Ethics Commission opinion about the controversial House Republican Caucus meetings, commission leadership directed the senator to either file an official ethics complaint or ask the attorney general’s office for an opinion.

On March 4, state Sen. Sollie Norwood asked the Ethics Commission to opine on whether House Republican Caucus meetings — which consist of more than a quorum of the entire House of Representatives, are closed to the public and are often used to debate public policy behind closed doors — violate the Open Meetings Act.

READ MORE: Speaker Philip Gunn uses secret Capitol meetings to pass his bills and restrict public debate. Is it legal?

But the same day, Norwood received a response from Tom Hood, executive director of the Ethics Commission, saying that the commission could not issue an opinion unless a formal complaint was filed.

“The Ethics Commission has the authority to enforce the Open Meetings Act through a complaint process,” Hood wrote to Norwood, who did not see Hood’s response until March 23. “However, the commission has no authority to issue advisory opinions about the Open Meetings Act…” 

Hood said that the attorney general’s office, not the Ethics Commission, has authority to issue advisory opinions regarding the Open Meetings Act.

As of March 24, the Ethics Commission does not have a complaint or any other request before its eight-member board to make a ruling on whether the House Republican Caucus is violating state law.

It is unclear if Norwood will file a formal ethics complaint or reach out to the attorney general’s office for an opinion. Meanwhile, the House Republican Caucus met Tuesday amid a cascade of questions from both Republicans and Democrats regarding the meetings’ legality.

The House Republican Caucus meetings, which have been convened regularly since Philip Gunn became speaker of the House in 2012, are the subject of close scrutiny this session as House and Senate leaders battle over major tax proposals.

Earlier this week, Mississippi Today chronicled what occurs inside the meetings that are closed to the public and the press. Major pieces of legislation authored or supported by Republican leaders including Gunn are often discussed and debated inside the backroom meetings.

Those deliberations often mean lawmakers will ask few or no questions during public committee meetings and on the House floor. In caucus meetings in recent years under Gunn’s leadership, Republican members have been asked to vote on specific bills, several lawmakers told Mississippi Today.

The meetings have never been challenged before the Ethics Commission or state courts. But several past opinions — including a 2017 Mississippi Supreme Court ruling — indicate the meetings could be illegal because the House Republican Caucus represents much more than a majority of the entire House of Representatives and is deliberating public policy in private.

Gunn’s staff maintains that the House Republican Caucus is not obligated to adhere to the Open Meetings Act because it is not a “public body,” as defined by state law.

“The House Republican Caucus is not a public body under the Open Meetings Act,” said Emily Simmons, Gunn’s communications director. Trey Dellinger, Gunn’s chief of staff, shared the same justification with Mississippi Today.

Senate leaders do not agree. When Lt. Gov. Delbert Hosemann became lieutenant governor and presiding officer of the Senate in 2020, second-term Republican state Sen. Mike Seymour inquired whether caucus meetings were legal under the Open Meetings Act. After Senate staff did some research, Hosemann decided that he would not convene Senate Republican Caucus meetings because the staff advised him the meetings could very likely violate the Open Meetings Act.

The House Republican Caucus met on Tuesday of this week, just hours after the legality of the meetings were publicly called into question. The caucus, according to attendees, did not discuss any specific piece of legislation. The House Republicans ate lunch and heard from House leaders about upcoming legislative deadlines.

The post Ethics Commission will not rule — for now — on controversial House Republican Caucus meetings appeared first on Mississippi Today.

In celebration of Mississippi Today’s sixth anniversary, we’re taking a look back at some of our top stories through the years. Today, I wanted to share a story I reported in 2017 on a House committee chairman declining to take up the proposal to make domestic violence the 13th ground for divorce in Mississippi, although we later gave an update that the House passed domestic violence provisions under an amendment to a bill.

We’ve been reporting on these issues for years now. Our ongoing coverage and publicity of these issues holds lawmakers and public officials accountable. It’s not something we’re going to stop writing about — in fact, we published an analysis about the state’s “irrevocably broken” marriage laws during the current legislative session back in February.

We published this series on domestic violence that highlighted the broken systems and laws in Mississippi that leave our citizens vulnerable. All of this reporting is made possible by readers like you that share our vision of a better informed Mississippi capable of change. The longer we are supported by our readers, the more continued coverage we are able to provide.

Since we are a nonprofit, donations allow us to dig deeper into the stories that matter most to you by providing funding for everything that happens behind the scenes and fueling special projects that bring our readers greater insight into the issues that matter the most.

To our current members: Thank you for being a part of our mission.

To our readers who are not yet members: Thank you for your readership and engagement. We hope you will celebrate our sixth anniversary with us by joining our passionate member community by creating a donation. Will you help us reach our goal of 60 new members in the next six days?

The post Mississippi Today reflects on the last six years appeared first on Mississippi Today.