Mississippi could become the nation’s 10th state to eliminate its personal income tax, with Republican Gov. Tate Reeves and House Speaker Philip Gunn (R-Clinton) backing differing plans to do away with the levy when lawmakers convene their 2023 session on Jan. 3.
Similar 2023 proposals to erase immediately, or phase-out, state income taxes are also expected to be filed in West Virginia, Arkansas, Iowa, Georgia, North Dakota, Utah, and, perhaps, Wisconsin.
Such measures are not unusual in state houses but are usually symbolic bills lodged by fiscal conservatives who argue taxing individual incomes to fund state—and in some cases, local— governments is counter-productive, especially with an array of alternate assessments available to replace “lost” revenues generated by personal income taxes.
But as legislatures enter their third sessions since the 2020 pandemic pumped trillions in federal recovery and stimulus assistance into state and local government coffers, and with tax revenues rebounding far faster than anticipated, many state budgets are touting temporary surpluses.
Some governors and lawmakers say these surpluses should be funneled back to taxpayers. During 2022 sessions, Washington, D.C.-based Tax Foundation reports more than half the states approved personal tax rebates, 38 trimmed assorted taxes, and at least 11 debated phasing out personal income levies altogether.
As state leaders assemble 2023 budget projections, the same issues are on the front burner, with revenue surpluses prodding lawmakers to push for another round of tax cuts despite acknowledging the largesse is temporary and amid calls for prudence in the face of a potential recession, that some economists say the nation is already experiencing.
Nine states right now don’t assess personal income taxes—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—with Mississippi the most likely to join their ranks in 2023.
One of the main reasons why I WILL NOT RETIRE IN MARYLAND
We are TAXED TO DEATH & there needs to be NO TAX all 50 states !!!!! Make Govt EARN their own damn Money like we have to do !!!!!!
Taxes got started in WW2 for the War effort & it has been ABUSED ever since then to Tax us to
Death !!!!
We will remain POOR until we Die because of TAXES & will Never make Enough Money $$$$$ !!!!
Just got our Maryland State and County Real Property tax Assessment for next three years and they’re increasing by a huge amount. I know property values went up for a time, but now everyone knows they’re going down due to increasing interest/mortgage rates as well as all the other economic factors causing people to have less ability to buy houses. Yet somehow we now have to pay as if we were going to be at the market top for the next three years. I guess the gubment can’t understand that real estate is going DOWN, not up. They say you can appeal, but I’m sure they’re just gonna rely on the increased value in recent years without any recognition of the declining value over the past year and projected to continue.
Is anyone thinking of a date when we can all attend a county council meeting. Let’s pack the room and educate members on artificial RE values and why the increase is ridiculous. While so many are already struggling to keep payments current…now this new version of highway robbery.