If the economy grows, the income tax cut will become more expensive in absolute terms -- as will the cost of education, infrastructure, and other public services.
Mississippi lawmakers are playing a game of one-upmanship when it comes to tax proposals, but the biggest losers could be taxpayers if lawmakers enact one of the more ill-advised plans.
The Legislature's tax cut proposals would require spending reductions for key services like education, infrastructure, mental health, and public safety.
Eliminating the individual income tax would mean either a massive erosion of resources for education and other priorities or a tax shift from wealthy Mississippians to working families who are struggling to make ends meet.
If the Legislature phases out the state's second-largest revenue source, future budgets will be forced to slash essential investments or raise taxes and fees on low- and middle-income families.
Forbes ranked Mississippi the worst state for business because of a poorly-educated workforce and substandard quality of life factors. Durable investments are needed, not more corporate tax cuts.
Despite revenue growth and full reserves, the Joint Legislative Budget Committee's FY2016 proposal fails to adequately fund the state's education and health commitments.
Despite $166 million in additional revenue, cuts are recommended for every major budget category except for the Mississippi Adequate Education Program, for which the proposal includes a very small increase for teacher pay raises enacted last year.
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