BY: Steve Wilson | Watchdog.org
Under Gunn’s plan, the 3 percent bracket would be eliminated by 2019, the 4 percent bracket by 2022 and the 5 percent bracket by 2030. For Mississippi families making $30,000 per year, it would add up to a $1,350 tax cut; people making $50,000 would receive $2,350 cut; and those making $75,000 would get a $3,350 cut.
“This is a prudent plan where we looked at the best practices in other states where things have worked and where they have not worked,” Mayo said. “There are those who believe government money is like the Robert Earl Keen song that the road goes on forever and the party never ends. We like Mississippians to have their own money and spend it on their own parties. We’ve made tough budget decisions for the last three years, and now we will reap the fruits of those labors.”
Nichole Kaeding, a budget analyst for the libertarian Cato Institute who specializes in state and federal spending policy, says there’s danger in the long phaseout times — a decade for Reeves’ plan and 15 years for Gunn’s.
“The risk of a long, drawn-out tax cut process is that the tax cuts might never come,” Kaeding told Mississippi Watchdog via email. “Future legislatures, future governors and future special interest groups could work to stymie the process, eliminating the promised cuts.
“It is normal for states to take several years to lower tax rates, but a 10- or 15-year schedule is quite long. A long tax cut schedule increases the risk that promised tax cuts will not occur.”