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Mississippi lawmakers to study tax cuts with committees, summit

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mississippitoday.org – Bobby Harrison – 2024-08-27 12:33:23

The two presiding officers of the Mississippi Legislature have formed special committees to further their goals of providing additional tax cuts during the 2025 legislative session.

On Tuesday, House Speaker Jason White, who earlier this year formed a special tax cut study committee, announced a day-long policy summit on tax cuts for Sept. 24. Also on Tuesday, Lt. Gov. Delbert Hosemann, who presides over the Senate, announced he has formed a special committee to study the state’s fiscal policy.

The committee will be led by the chairs of the Senate’s two money committees, Senate Appropriations Chairman Briggs Hopson and Finance Chairman Josh Harkins.

“Our ultimate goal is always to lower the tax burden and ensure taxpayer dollars stay in taxpayer pockets,” Hosemann said in a news release. “This requires Appropriations and Finance leadership to be at the table looking at all income and expenses to ensure we are being as efficient as possible while fully funding necessary services.”

Both Gov. Tate Reeve and White have advocated eliminating the state’s income tax, which accounts for about 30% of the state general fund revenue, while White also has spoken of reducing the state’s grocery tax.

Hosemann has voiced support for at least reducing the 7% grocery tax, which is the highest statewide tax on food in the nation.

Hosemann has said that ensuring the fiscal integrity of the state should not be ignored when looking at tax cuts.

The income tax generates about $2 billion a year while it has been estimated, based on a 2019 study, that the grocery tax generates about $325 million a year. But the grocery tax would generate much more now than in 2019 because of the significant increase in grocery prices. Since the 7% sales tax is imposed on the cost of groceries, state Economist Corey Miller has said that inflation has provided significantly more revenue from the grocery tax in recent years for the state.

In 2022, the Legislature passed and Reeves signed into law a $525 million income tax cut that is currently being enacted. When fully enacted in 2026, income in Mississippi will be taxed at a rate of 4%.

In addition, a business tax cut enacted in 2016 is still being phased in — $42 million annually through 2029 before fully enacted.

The clamor for additional tax cuts has been intensified in large part because of the unprecedented growth in revenue collections in recent years. Most states have experienced similar growth thanks primarily to the large influx of federal funds provided to states primarily to deal with the COVID-19 pandemic. In addition, revenue growth has been aided by Mississippi being so heavily reliant on the sales tax for its revenue. As prices of retail items have increased during the inflationary period, that has resulted in the 7% sales tax being levied on more expensive items generating more revenue for the state.

Still, during the past year, revenue collections have been slowing. For the past fiscal year, which ended June 30, the state collected only $18.4 million or .24% more than was collected the previous year.

And if not for collecting $68.7 million or 84.4% more in interest earnings than the previous fiscal year, the state would have been in the rare situation of collecting less revenue than the previous year for only the sixth time since 1970. Higher interest rates have spurred the increased earnings on the unprecedented surplus funds the state currently has.

Multiple speakers are scheduled for White’s tax summit at the Sheraton Refuge in Flowood, including Gov. Reeves, legislative leaders, other state officials and legislators from Arkansas who have worked on tax cuts in the neighboring state. National tax cut proponent Grover Norquest also is scheduled to speak.

“It is exciting to be assembling this policy summit that will be free to the public to encourage engagement from all interested parties so lawmakers, tax experts, and any Mississippian can partake in robust conversation that will lead to a better, brighter Mississippi,” White said in a news release.

Other members of the Hosemann study group include Sens. Andy Berry, Bradford Blackmon, Rod Hickman, Chris Johnson, Dean Kirby, John Polk, Derrick Simmons and Daniel Sparks.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

On this day in 1997

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mississippitoday.org – Jerry Mitchell – 2024-12-22 07:00:00

Dec. 22, 1997

Myrlie Evers and Reena Evers-Everette cheer the jury verdict of Feb. 5, 1994, when Byron De La Beckwith was found guilty of the 1963 murder of Mississippi NAACP leader Medgar Evers. Credit: AP/Rogelio Solis

The Mississippi Supreme Court upheld the conviction of white supremacist Byron De La Beckwith for the 1963 murder of Medgar Evers. 

In the court’s 4–2 decision, Justice Mike Mills praised efforts “to squeeze justice out of the harm caused by a furtive explosion which erupted from dark bushes on a June night in Jackson, Mississippi.” 

He wrote that Beckwith’s constitutional right to a speedy trial had not been denied. His “complicity with the Sovereignty Commission’s involvement in the prior trials contributed to the delay.” 

The decision did more than ensure that Beckwith would stay behind bars. The conviction helped clear the way for other prosecutions of unpunished killings from the Civil Rights Era.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Medicaid expansion tracker approaches $1 billion loss for Mississippi

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mississippitoday.org – Bobby Harrison – 2024-12-22 06:00:00

About the time people ring in the new year next week, the digital tracker on Mississippi Today’s homepage tabulating the amount of money the state is losing by not expanding Medicaid will hit $1 billion.

The state has lost $1 billion not since the start of the quickly departing 2024 but since the beginning of the state’s fiscal year on July 1.

Some who oppose Medicaid expansion say the digital tracker is flawed.

During an October news conference, when state Auditor Shad White unveiled details of his $2 million study seeking ways to cut state government spending, he said he did not look at Medicaid expansion as a method to save money or grow state revenue.

“I think that (Mississippi Today) calculator is wrong,” White said. “… I don’t think that takes into account how many people are going to be moved off the federal health care exchange where their health care is paid for fully by the federal government and moved onto Medicaid.”

White is not the only Mississippi politician who has expressed concern that if Medicaid expansion were enacted, thousands of people would lose their insurance on the exchange and be forced to enroll in Medicaid for health care coverage.

Mississippi Today’s projections used for the tracker are based on studies conducted by the Institutions of Higher Learning University Research Center. Granted, there are a lot of variables in the study that are inexact. It is impossible to say, for example, how many people will get sick and need health care, thus increasing the cost of Medicaid expansion. But is reasonable that the projections of the University Research Center are in the ballpark of being accurate and close to other studies conducted by health care experts.

White and others are correct that Mississippi Today’s calculator does not take into account money flowing into the state for people covered on the health care exchange. But that money does not go to the state; it goes to insurance companies that, granted, use that money to reimburse Mississippians for providing health care. But at least a portion of the money goes to out-of-state insurance companies as profits.

Both Medicaid expansion and the health care exchange are part of the Affordable Care Act. Under Medicaid expansion people earning up to $20,120 annually can sign up for Medicaid and the federal government will pay the bulk of the cost. Mississippi is one of 10 states that have not opted into Medicaid expansion.

People making more than $14,580 annually can garner private insurance through the health insurance exchanges, and people below certain income levels can receive help from the federal government in paying for that coverage.

During the COVID-19 pandemic, legislation championed and signed into law by President Joe Biden significantly increased the federal subsidies provided to people receiving insurance on the exchange. Those increased subsidies led to many Mississippians — desperate for health care — turning to the exchange for help.

White, state Insurance Commissioner Mike Chaney, Gov. Tate Reeves and others have expressed concern that those people would lose their private health insurance and be forced to sign up for Medicaid if lawmakers vote to expand Medicaid.

They are correct.

But they do not mention that the enhanced benefits authored by the Biden administration are scheduled to expire in December 2025 unless they are reenacted by Congress. The incoming Donald Trump administration has given no indication it will continue the enhanced subsidies.

As a matter of fact, the Trump administration, led by billionaire Elon Musk, is looking for ways to cut federal spending.

Some have speculated that Medicaid expansion also could be on Musk’s chopping block.

That is possible. But remember congressional action is required to continue the enhanced subsidies. On the flip side, congressional action would most likely be required to end or cut Medicaid expansion.

Would the multiple U.S. senators and House members in the red states that have expanded Medicaid vote to end a program that is providing health care to thousands of their constituents?

If Congress does not continue Biden’s enhanced subsidies, the rates for Mississippians on the exchange will increase on average about $500 per year, according to a study by KFF, a national health advocacy nonprofit. If that occurs, it is likely that many of the 280,000 Mississippians on the exchange will drop their coverage.

The result will be that Mississippi’s rate of uninsured — already one of the highest in the nation – will rise further, putting additional pressure on hospitals and other providers who will be treating patients who have no ability to pay.

In the meantime, the Mississippi Today counter that tracks the amount of money Mississippi is losing by not expanding Medicaid keeps ticking up.

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 1911

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mississippitoday.org – Jerry Mitchell – 2024-12-21 07:00:00

Dec. 21, 1911

A colorized photograph of Josh Gibson, who was playing with the Homestead Grays Credit: Wikipedia

Josh Gibson, the Negro League’s “Home Run King,” was born in Buena Vista, Georgia. 

When the family’s farm suffered, they moved to Pittsburgh, and Gibson tried baseball at age 16. He eventually played for a semi-pro team in Pittsburgh and became known for his towering home runs. 

He was watching the Homestead Grays play on July 25, 1930, when the catcher injured his hand. Team members called for Gibson, sitting in the stands, to join them. He was such a talented catcher that base runners were more reluctant to steal. He hit the baseball so hard and so far (580 feet once at Yankee Stadium) that he became the second-highest paid player in the Negro Leagues behind Satchel Paige, with both of them entering the National Baseball Hame of Fame. 

The Hall estimated that Gibson hit nearly 800 homers in his 17-year career and had a lifetime batting average of .359. Gibson was portrayed in the 1996 TV movie, “Soul of the Game,” by Mykelti Williamson. Blair Underwood played Jackie Robinson, Delroy Lindo portrayed Satchel Paige, and Harvey Williams played “Cat” Mays, the father of the legendary Willie Mays. 

Gibson has now been honored with a statue outside the Washington Nationals’ ballpark.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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