The Mississippi Legislature is weighing a major shake-up to the state’s tax structure, with both the House (HB1) and Senate (SB 3095) pushing plans to eliminate or drastically reduce the state income tax.
According to data from the Institute on Taxation and Economic Policy, these proposals come with a hefty price tag. The House plan would slash $2.1 billion annually—nearly wiping out the state’s entire yearly K-12 education budget. The Senate plan, while smaller, would still strip $876 million per year—roughly the cost of funding Mississippi’s public colleges and universities or nearly enough to cover the state’s Medicaid program.
Beyond the budget impact, both plans deepen income inequality. Under the House plan, the bottom 40% of Mississippians—those making $38,770 or less—would actually see a tax increase, while the wealthiest residents would walk away with a nearly $40,000 tax break, about the same as the state’s average salary. The Senate’s version spreads tax cuts across all income groups, but the disparity is stark: the wealthiest Mississippians would see a $13,000 tax cut, while the average taxpayer would get just $300—barely enough to buy a gallon of milk each week. Meanwhile, the lowest-income Mississippians would save only $40 a year—just enough to buy a loaf of bread once a month.
These drastic cuts are being proposed at the same time Congress is battling over a federal budget that threatens to strip away critical funding for programs that Mississippi relies on—like education, Medicaid, food assistance, and infrastructure. If these state tax cuts go through while federal support shrinks, Mississippi could face a perfect storm: underfunded schools, struggling hospitals, and fewer resources for working families, all while the wealthiest residents pocket the biggest benefits.
The bottom line? These tax cuts come at a steep cost—one that could reshape Mississippi’s ability to fund schools, healthcare, and public services for years to come, all while working Mississippians shoulder more of the burden.
You can take action right now to stop this train from derailing. Check out this toolkit from One Voice that provides messaging, talking points, email language, phone scripts, and more - resources to help you beat back these tax cuts. Call the Legislative Switchboard at (601) 359-3770 or visit the Legislature website to find contact information for all State Representatives and Senators.