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Gunn backs $1.38B plan to phase out personal income tax

Backed by members of the House Republican Caucus, House Speaker Philip Gunn, R-Clinton, outlines a proposed individual tax elimination during a news conference at the Capitol in Jackson, Miss., Tuesday, Feb. 24, 2015. The income tax cut would occur over a 15-year period beginning in fiscal year 2017, and will only take place if there is a three percent growth in each fiscal year. (AP Photo/Rogelio V. Solis)

Backed by members of the House Republican Caucus, House Speaker Philip Gunn, R-Clinton, outlines a proposed individual tax elimination during a news conference at the Capitol in Jackson, Miss., Tuesday, Feb. 24, 2015. The income tax cut would occur over a 15-year period beginning in fiscal year 2017, and will only take place if there is a three percent growth in each fiscal year. (AP Photo/Rogelio V. Solis)

JACKSON — Speaker Philip Gunn and other House Republicans are lauding their plan to eliminate Mississippi’s personal income tax.

The House Ways and Means Committee voted 15-7 Tuesday to advance House Bill 1629, moving it to the full House where it will need a 60 percent majority to advance.

Gunn, of Clinton, says the plan would cut $1.38 billion in taxes in steps through 2028, pausing in any year when state revenue didn’t grow by 3 percent.

The proposal could shift the debate away from proposals to cut business taxes. Lt. Gov. Tate Reeves proposed a $382 million tax cut earlier, including phasing out the $242 million franchise tax.

Opponents warn that the plan could starve state agencies of needed revenue and leave the state’s tax system more regressive than now.

 

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