We take a look at a number of taxing issues in this issue of the Mississippi Business Journal. An annual editorial focus on CPAs and tax planning gives our writers opportunities to delve into the various local, state and federal tax rules, regulations and situations that Mississippi business and industry must deal with every day.
More often than not, we — and our readers — are left wondering how anyone can find the time just to do business when the paperwork government demands remains so extensive and maddening.
Of course, recent employment data suggests that employment in Mississippi grew in only two sectors this past year, and (not surprisingly) one of those sectors was government. At a time when most businesses are cutting back and running lean — focused on efficiency — government grows. Ideally, those new government workers would be involved directly in such noble pursuits as “serving the people” and “working for the public good.” The prospect of that is, at best, dubious.
But back to those maddening tax problems. One, in particular, MBJ contributing writer Lynne Jeter takes a look at this week. In Mississippi’s state tax code, part of Rule 75 states: “Professional services not directly related to the technical design and programming of computer software are not taxable and may be excluded from the gross taxable income.”
As almost any CPA would tell you, reasonable people could come up with completely different interpretations of that regulation. And unfortunately, they have — and it’s costing Mississippi businesses that are already overburdened with taxes, costs and an economy in recession.
“I’ve been to the Mississippi Economic Council and CIT.ms meetings and they’re wanting technology companies to come to Mississippi,” said James Day, president of Jackson-based Cubla Inc. “They’ll leave. We are one of the very few states that try to charge tax on this kind of service.”
We are sending a mixed-up message to the rest of the world if we work hard to lure high-tech companies to Mississippi and then tax them out of business.
We have enough economic development hurdles in this state; we certainly don’t need bad tax laws, as well.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info