On March 27, 2025, Mississippi Governor Tate Reeves signed the Build-Up Mississippi Act. This act phases out the individual income tax in the state of Mississippi. Mississippi will gradually eliminate the income tax while reducing the grocery tax and raising the tax under the bill signed on Thursday. During the signing ceremony, the governor reflected on the decade of work it took for the Mississippi legislature to accomplish this, a process that began when he was the lieutenant governor and president of the Senate in 2015. “This is more than a policy victory. This is a transformation, and it’s a transformation that I have believed in, fought for, and worked toward for many years.”
The elimination of income tax in Mississippi is a complex issue with both benefits and drawbacks. Supporters argue that it will create more competitive business environments and jobs. However, critics express concerns about the potential impact on state services and the possibility that the burden of taxation may shift and impact other areas, such as sales tax. Governor Reeves said, “That government should take less so that you can keep more, that our people should be rewarded for hard work, not punished. And that Mississippi has the potential to be a magnet for opportunity, for investment, for talent, and for families looking to build a better life.”
Eliminating income tax in Mississippi could encourage entrepreneurship and hard work by allowing small business owners and families to keep more of their money. It would make Mississippi a draw for inventors and companies looking for a more carefree environment where families and companies can prosper.
Sources:
https://www.governing.com/finance/mississippis-historic-achievement-eliminating-the-income-tax
