Mississippi is one of the states with a surplus of funds and is handing out stimulus checks. Instead of lowering taxes, they intend to send out a one-time $1000 stimulus check.
At the Mississippi Capitol, an internecine Republican showdown over tax cuts has begun, with a slew of other bills likely to be held hostage as the House and Senate leadership battle it out.
Mississippi Residents Can Claim The One-Time Stimulus Check
The Senate House, after two years of fighting to remove personal income taxes, was digging in on its stance when the Senate gave the House an austere income tax cut package this week. As a result, politicians and lobbyists worried that other bills would be killed or kept captive in the crossfire.
House Speaker Philip Gunn, a Republican, seeks a complete revamp of the state tax structure, including the phase-out of the personal income tax and a rise in sales taxes, a stance backed by national and state conservative tax think tanks.
Lt. Gov. Delbert Hosemann, a Republican, supports a more cautious, modest tax decrease. He believes that overhauling the House is risky in these unpredictable and volatile economic times. House leaders argue that before the epidemic and federal stimulus expenditure, the state economy was on the rise and that state revenue seldom falls. They claim that the state government may reduce taxes while increasing spending.
In Mississippi, the legislature may issue a one-time $1,000 stimulus check to all those presently earning, without affecting their ability to continue receiving services at existing levels. The one-time income tax refund is included in the Senate bill. It is a means for politicians to avoid spending one-time funds on ongoing expenses. Maybe the House would agree to such a proposal. To compensate for the reduction, the Senate proposal will not impose any more taxes. Reeves and those who favor the income tax’s phase-out oppose raising other taxes.