Mississippi Today
How Mississippi’s tax structure favors the wealthy and hurts the poor
Mississippi has the nation’s lowest per capita income at $46,248 annually and the highest percentage of people living in poverty at 18.2%.
Yet the state‘s tax structure does little if anything to try to offset those statistics for the state’s poorest citizens.
In fact, the tax structure does more to harm the poor than to help them. Mississippi’s low-wage earners pay a greater percentage of their income in state and local taxes than do the state’s more affluent residents, a recent study found.
A January report by the Institute of Taxation and Economic Policy found that Mississippi has the 19th-most regressive tax system in the nation, where low-income residents are forced to pay a larger percentage of their income in taxes than the state’s wealthier citizens.
The study shows the income tax is the only tax that requires wealthy Mississippians to pay more than the poor. Gov. Tate Reeves wants to eliminate the income tax. The personal income tax already has been cut twice in recent years. In addition, multiple tax cuts for businesses also have been enacted or are being phased in.
Currently, a $525 million reduction in the income tax is being phased in plus the state also is phasing out a major tax on businesses. Instead of eliminating the income tax, Kyra Roby, policy analyst for One Voice, which advocates for the poor in Mississippi, said that tax cut should be reversed and that the state should add a 6% income tax bracket for those earning more than $100,000 annually.
According to the Institute of Taxation and Economic Policy report, the bottom 20% of Mississippi wage earners — those earning less than $19,300 — pay 12.4% of their income in state and local taxes, which is more than any other income group.
By contrast, the top 1% in Mississippi — those making more than $362,300 annually — pay 6.9% of their income in state and local taxes. The next 4%, earning between $182,500 and $362.300, pay 8.2%, and the next 15%, earning between $104,800 and $182,500, pay 9.6%.
What makes the Mississippi tax system so punitive for the poor is primarily the state’s sales tax. Mississippi’s 7% sales tax on most retail items is among the highest in the nation. And the state’s 7% sales tax on food is the highest statewide grocery tax in the nation. Sales taxes and excise taxes, such as those levied on internet sales, are viewed as being more of a burden on the poor than on the wealthy. The tax on food is considered particularly punitive for the poor since it requires a poor person to pay a greater percentage of their income for a necessity than the wealthy.
Reeves has long advocated for eliminating the income tax as has much of the House leadership in recent years. Reeves argues that eliminating the income tax would boost the state economy and help working Mississippians. Reeves cites three states that he says he wants to emulate in eliminating the income tax: Texas, Tennessee and Florida. Interestingly, all three, like Mississippi, have a greater percentage of their residents living in poverty than the national average.
While House leaders have in the past voiced support for Reeves’ plan to eliminate the income tax, Lt. Gov. Delbert Hosemann, who presides over the Senate, has said he would support further tax cuts, but stopped short of endorsing a complete elimination of the income tax this year. Hosemann also said a cut and possibly an elimination of the grocery tax should be considered.
Although it is generally conceded that eliminating the grocery tax would be more beneficial to poor Mississippians, that decision would have much more of an impact on state revenue.
Research in 2019 conducted by the campaign of Jim Hood, the unsuccessful Democratic candidate for governor that year, estimated that the complete elimination of the grocery tax would cost the state $327 million annually. The personal income tax generates more than $2 billion annually in state revenue, though that number could drop in future years as the $525 million tax cut enacted in 2022 is phased in.
Reeves has never been an advocate for reducing or eliminating the grocery tax, though many other Republican policymakers have in the past.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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Mississippi Today
On this day in 1875
Nov. 2, 1875
The first Mississippi Plan, which included violence against Black Americans to keep them from voting, resulted in huge victories for white Democrats across the state.
A year earlier, the Republican Party had carried a majority of the votes, and many Black Mississippians had been elected to office. In the wake of those victories, white leagues arose to challenge Republican rule and began to use widespread violence and fraud to recapture control of the state.
Over several days in September 1875, about 50 Black Mississippians were killed along with white supporters, including a school teacher who worked with the Black community in Clinton.
The governor asked President Ulysses Grant to intervene, but he decided against intervening, and the violence and fraud continued. Other Southern states soon copied the Mississippi plan.
John R. Lynch, the last Black congressman for Mississippi until the 1986 election of Mike Espy, wrote: “It was a well-known fact that in 1875 nearly every Democratic club in the State was converted into an armed military company.”
A federal grand jury concluded: “Fraud, intimidation, and violence perpetrated at the last election is without a parallel in the annals of history.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Mississippi Today’s NewsMatch Campaign is Here: Support Journalism that Strengthens Mississippi
High-quality journalism like ours depends on reader support; without it, we simply couldn’t exist. That’s why we’re proud to join the NewsMatch movement, a national initiative aimed at raising $50 million for nonprofit newsrooms that serve communities like ours here in Mississippi, where access to reliable information has often been limited.
In a time when trusted journalists and media sources are disappearing, we believe the stakes couldn’t be higher. Without on-the-ground, trustworthy reporting, civic engagement suffers, accountability falters and corruption often goes unaddressed. But it doesn’t have to be this way.
Here at Mississippi Today we act as watchdogs, holding those in power accountable, and as storytellers, giving a platform to voices that have been ignored for too long. And we’re committed to keeping our stories free for everyone because information should be accessible when it’s needed most.
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Every dollar raised strengthens our ability to serve you with fact-based journalism on issues that impact your everyday life—whether it’s covering local election issues or reporting on decisions affecting schools, safety and economic growth in Mississippi. Your support makes it possible for us to stay rooted in the community, offering nuanced perspectives that help Mississippians understand and engage with what’s happening around them.
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We’ll examine what’s at stake if local newsrooms lose press freedoms and will discuss how you, as members of the public, can help protect it. This event is open to Mississippi Today and Verite News members as a special thank-you for supporting local journalism and standing with us in this mission. Donate today to RSVP!
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This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Hinds County loses fight over control of jail
The Hinds County sheriff and Board of Supervisors have lost an appeal to prevent control of its jail by a court-appointed receiver and an injunction that orders the county to address unconstitutional conditions in the facility.
Two members from a three-judge panel of the 5th U.S. Circuit Court of Appeals agreed with decisions by U.S. District Judge Carlton Reeves to appoint a receiver to oversee day-to-day jail operations and keep parts of a previous consent decree in place to fix constitutional violations, including a failure to protect detainees from harm.
However, the appeals court called the new injunction “overly broad” in one area and is asking Reeves to reevaluate the scope of the receivership.
The injunction retained provisions relating to sexual assault, but the appeals court found the provisions were tied to general risk of violence at the jail, rather than specific concerns about the Prison Rape Elimination Act. The court reversed those points of the injunction and remanded them to the district court so the provisions can be removed.
The court also found that the receiver should not have authority over budgeting and staff salaries for the Raymond Detention Center, which could be seen as “federal intrusion into RDC’s budget” – especially if the receivership has no end date.
Hinds County Board of Supervisors President Robert Graham was not immediately available for comment Friday. Sheriff Tyree Jones declined to comment because he has not yet read the entire court opinion.
In 2016, the Department of Justice sued Hinds County alleging a pattern or practice of unconstitutional conditions in four of its detention facilities. The county and DOJ entered a consent decree with stipulated changes to make for the jail system, which holds people facing trial.
“But the decree did not resolve the dispute; to the contrary, a yearslong battle ensued in the district court as to whether and to what extent the County was complying with the consent decree,” the appeals court wrote.
This prompted Reeves to hold the county in contempt of court twice in 2022.
The county argued it was doing its best to comply with the consent decree and spending millions to fix the jail. One of the solutions they offered was building a new jail, which is now under construction in Jackson.
The county had a chance to further prove itself during three weeks of hearings held in February 2022. Focuses included the death of seven detainees in 2021 from assaults and suicide and issues with staffing, contraband, old infrastructure and use of force.
Seeing partial compliance by the county, in April 2022 Reeves dismissed the consent decree and issued a new, shorter injunction focused on the jail and removed some provisions from the decree.
But Reeves didn’t see improvement from there. In July 2022, he ordered receivership and wrote that it was needed because of an ongoing risk of unconstitutional harm to jail detainees and staff.
The county pushed back against federal oversight and filed an appeal, arguing that there isn’t sufficient evidence to show that there are current and ongoing constitutional violations at the jail and that the county has acted with deliberate indifference.
Days before the appointed receiver was set to take control of the jail at the beginning of 2023, the 5th Circuit Court ordered a stay to halt that receiver’s work. The new injunction ordered by Reeves was also stayed, and a three-person jail monitoring team that had been in place for years also was ordered to stop work.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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