Overview

• The 'Build Up Mississippi Act' will lower the state income tax rate incrementally, starting in 2024, with a target of full elimination by the mid-2030s.
• The legislation also reduces the grocery tax from 7% to 5%, providing additional relief for Mississippi residents.
• Future income tax reductions are tied to state budget surpluses, leveraging Mississippi's recent strong fiscal performance.
• A mathematical error in the Senate's amendment process unintentionally accelerated the timeline for tax reductions.
• Critics, including some Democrats, warn of potential risks to public sector funding, while proponents argue the changes will boost Mississippi’s economic competitiveness.