It’s too soon to know what kind of tax cuts legislators will consider. They could look at a business-focused break, or at a narrowly focused reduction of income taxes.
“We’re looking very closely at the possibility of an income tax cut for working-class families. So we’re looking at roughly about a $40,000 income and below,” Bryant told reporters last week after Hobnob, a business gathering sponsored by the state chamber of commerce, the Mississippi Economic Council.
The governor, who is seeking a second term in 2015, said he asked the Department of Revenue to check how many people fall into that income bracket and how a tax reduction would affect the state budget.
“If there’s a possibility of looking at a segment of the population and putting some money back into their hands, I would like to do that,” Bryant said. “Now, people might say, ‘Oh, that’s only $100.’ But when it costs you $50 to fill your pickup truck up, $100 is effective.”
Mississippi residents pay 3 percent tax on their first $5,000 of taxable income, 4 percent on the next $5,000 and 5 percent on taxable income over $10,000.