How the Mississippi Tax Freedom Act would affect your taxes

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The Mississippi House of Representatives passed legislation on Wednesday that would eliminate the state income tax, and now it heads to the Senate for debate.

Representative Trey Lamar shared the details of the plan with SuperTalk Mississippi this morning.

If implemented, the plan would eliminate state income tax on the first $40,000 for a single individual and $80,000 for married couples.

“We did a simple analysis yesterday with some folks, and even if you’re a retired person that’s currently not paying income tax…if you’re a retired person living on a fixed income, you still save money under this plan,” Lamar explained.

The bill calls for a 35% reduction in car tags. The sales tax on cars would remain 5%. The House eliminated some things folks didn’t like about an income tax elimination bill that was introduced but failed during last year’s session.

“The initial bill went up on everybody that pays a sales tax right now.  That included farming equipment, logging equipment, other types of equipment, manufacturing equipment, automobiles. We removed all that from the bill,” Lamar said.

That means the only thing that would go up is the general sales tax, which would go from the current 7% to 8.5%. The grocery tax, which is currently at 7%, would be reduced to 5.5%.

Check out the full interview with Lamar below.

The post How the Mississippi Tax Freedom Act would affect your taxes appeared first on SuperTalk Mississippi.