The GOP-controlled House and Senate passed competing “compromise” plans on Tuesday to eliminate the state income tax and raise gasoline taxes — but the Senate only narrowly passed its plan with the help of four Democrats. 

The proposals advanced by each chamber continue a debate over the potential risks and rewards of drastically altering the tax structure in the poorest state in the country as federal spending cuts loom. 

Tuesday’s Senate vote raises the question of whether that chamber could pass a more aggressive income tax elimination proposal even if the Republican Senate leadership reaches and agreement with House leaders.

The legislative dynamics 

The state Constitution requires a three-fifths majority of lawmakers to approve tax bills, so if Democrats Sarita Simmons of Cleveland, Juan Barnett of Heidelberg, Gary Brumfield of Magnolia and Angela Turner Ford of West Point had not joined the Republican majority to support the measure, it would have failed. 

“You know what they call a medical school student who finished last in his class? A doctor,” Senate Finance Chairman Josh Harkins told reporters after the close vote. 

Only a couple of votes could have derailed the bill in the Senate because four Republican senators voted against the measure, and four Republicans voted “present.”

Harkins said the razor-thin margin shows how fragile the coalition of support is in the 51-member chamber and how there isn’t an enormous appetite to accelerate the income tax elimination rapidly as the House proposes. 

Some Democratic senators, including Minority Leader Derrick Simmons, appeared frustrated that four of their colleagues broke from them to ensure the measure’s passage.

“Time and time again, I’ve seen where (Democrats) have had the ability to exert our power, yet we have fallen short by not voting in solidarity with the working people of Mississippi,” Simmons told Mississippi Today. 

Ahead of a Tuesday evening deadline, the House also passed an updated version of its original tax reform package in a 91-27 vote, with 11 Democrats crossing party lines in the Republican-controlled chamber to support the bill. Unlike the Senate, every Republican in the House chamber has voted to eliminate the income tax. 

Debate centers on slashing state budget as federal cuts loom

Republican House Ways and Means Trey Lamar said the House proposal slashes state revenues to give working people tax cuts. 

“This bill is the most substantial tax cut for Mississippians that this state has ever known or seen,” Lamar said.  

House Democratic Leader Robert Johnson called the bill “grossly irresponsible” and “dangerous,” arguing it would hollow out the state’s budget at a time when the federal government is considering vast spending cuts to programs Mississippi relies on. 

“We are the poorest state in the union, the lowest per capita income in the country … They are getting ready to put you in a situation where it doesn’t matter how much money they put back in your pockets,” Johnson said. “Be cognizant of the fact that you elected people to come in here and gut your public services, gut your public education, gut your public safety and gut your public health.” 

Experts have told Mississippi Today that deep federal spending cuts, along with the elimination of the state income tax, could reduce Mississippi’s ability to fund services. Some also warn the shift to a more regressive form of taxation would hit poor and low-income Mississippians hardest.

Mississippi is perennially among the most federally dependent states, receiving nearly a 3-1 return for every dollar in federal taxes it pays. Both Republican and Democratic lawmakers have expressed fear of the economic impact of federal cuts.

The focus of future negotiations 

Now that the two chambers have passed alternative tax cut plans, six lawmakers will likely try to work out a final agreement in a conference committee. 

Going forward, the Senate is unlikely to accept a deal that increases the state sales tax and does not change the structure of the Public Employees Retirement System. The Senate is pushing a “hybrid” retirement plan to shore up the system financially by cutting benefits for future employees.

House Speaker Jason White said he plans to press the Senate to move off its “hard condition” of overhauling PERS. His caucus wants a dedicated stream of revenue for the retirement system. The House has proposed diverting most of the state’s lottery proceeds to PERS, or he suggested for the first time Tuesday that revenue from legalizing online sports betting could also help the system.

“The spot we’ve identified for additional revenue is mobile sports betting, where we’re losing to illegal gambling now,” White said. If (the Senate) wants to keep the amount of either gas tax or sales that has to be raised to offset this income tax (cut), then we should look at that as a valid place to look.” 

Legalizing mobile sports betting has been another wedge between the chambers. The House has passed legislation this session to legalize the practice but the measure faces opposition in the Senate.

A look at the latest tax proposals  

The new House Plan would:

• Fully eliminate the state income tax by 2037. The elimination would begin phasing in after the state next year finishes implementing another income tax cut it approved in 2022. The phase-in period would take a decade, beginning with a reduction from 4% to 3.5% and then lowering further from there.
• Cut about $2.2 billion from the state’s current $7 billion general fund. The state would also raise about $750 million through tax increases. But much of collected through tax increases would go to the general fund.
• Increase the state’s net sales tax from 7% to 8%. The revenue from this tax increase would provide $48 million annually to pay for infrastructure improvements via the State Aid Road Fund. The remaining money would go into the state’s general fund.
• Add a new 15-cents-a-gallon excise tax on gasoline. The tax increase would be phased in at 5 cents a year over three years. This would be added to the current 18.4-cents-a-gallon excise Mississippi motorists currently pay.
• Cut the sales tax on groceries from 7% to 5%.
• Increase the state’s “use yax,” which is imposed on goods purchased outside the state or online, from 7% to 8%.
• Create a new fund that gives those over the age of 65 property tax credits of $200 a year. The fund would be paid for by revenue from the use tax increase referenced above.
• Transfer $100 million per year from the state lottery system into the public employee retirement system. 

The new Senate plan would: 

• Decrease the 4% income tax rate by .25% each year from 2027 to 2030 and leave it at 3% in 2030.
• After it reaches 3%, the income tax would be reduced with “growth triggers” or at a proportional rate depending on the difference between the state’s revenue and spending plans that year. 
• Reduce the sales tax on groceries from 7% to 5%.
• Increase the 18.4-cents-a-gallon gasoline tax by 9 cents over three years, for a total of 27.4 cents, then this would increase automatically based on the cost of road construction.
• Change benefits for government employees hired after March 2026 to a “hybrid” retirement that includes part-defined benefit and part-defined contribution.

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

by Sophia Paffenroth, Mississippi Today
March 18, 2025

Dozens of advocates, doctors and spiritual leaders gathered outside the Capitol Tuesday to call for the “defense and expansion of Medicaid.” 

“Medicaid is not just an insurance program – it is a lifeline for 707,000 Mississippians,” said Sonya Williams Barnes, the state policy director for Southern Poverty Law Center. “Medicaid ensures that 315,000 children receive the health care they need … Make no mistakes: A cut to Medicaid directly harms our most vulnerable.”

Despite having some of the strictest eligibility requirements for the program, Mississippi has one of the largest Medicaid populations in the country as a result of the state’s poverty. 

With federal changes threatening already-existing health care programs, defending Medicaid for vulnerable groups such as those who are pregnant, elderly or disabled has become the new goal  for Mississippi advocates. Expanding Medicaid – arguably the biggest issue of the historic 2024 legislative session – has taken a backseat. 

But some urge it’s as important as ever. 

“In this moment we cannot shift gears, after all these years, and only beg our elected officials to save Medicaid,” the Rev. Jason Coker said. “We can’t give up that ground at a moment when we need to be gaining ground. We’ve got to keep pushing for Medicaid expansion, while we demand and pray for Medicaid to continue uncut.” 

Key lawmakers have said expanding Medicaid in Mississippi is all but dead this year – though a vehicle for expansion is still alive in the Legislature. 

“In a most practical sense, I’d say we probably won’t be doing anything this year,” Senate Medicaid Chairman Kevin Blackwell told Mississippi Today.

Mississippi is one of 10 states not to expand Medicaid, which would give health insurance to hundreds of thousands of low-income working Mississippians who can’t afford private health insurance and don’t qualify for subsidies that make marketplace insurance affordable.

“What kind of society are we to compound suffering with catastrophic costs to those in our congregations and so many across our state who fall within that coverage gap?” Coker asked. 

Dr. Randy Easterling, former president of the Mississippi State Medical Association, recounted a story of an uninsured patient who was diagnosed with multiple myeloma, a kind of cancer, around the same time that Easterling’s insured relative was also diagnosed with the disease. The uninsured patient, Jimmy, died, while Easterling’s relative is now in remission. 

“Is this what we boil down to?” Easterling asked. “If you have insurance, you live, if you don’t, you die? Let me tell you something, folks: That’s not what I signed up for when I went to medical school.”

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

Mayor Simmons: Greenville aims to be city of hope and opportunity

by Errick Simmons, Mississippi Today
March 18, 2025

Editor’s note: Errick Simmons is the third-term mayor of Greenville. This article is part of an ongoing Mississippi Today Ideas series showcasing perspectives of mayors across the state.

As mayor of Greenville, it’s my honor to share our city’s journey of growth and transformation. Greenville isn’t just a point on a map — it’s a vibrant community with a rich history, culture and shared vision for the future.

With billions of dollars in investments flowing into Greenville, including the recent $1.2 billion Entergy project, we’re witnessing the dawn of a new era. These milestones are creating opportunities across education, healthcare, infrastructure and economic development, fueling a Greenville that’s resilient, inclusive and built to last.

Historic investments reshaping Greenville

Greenville is seeing an unprecedented wave of investment that touches every corner of our community. In addition to a new federal courthouse positioning Greenville as a judicial hub, we’ve launched the Greenville Kearns Aerospace Maintenance (GKAM) program. In partnership with Mississippi Delta Community College, this initiative provides local students with hands-on aviation training, opening pathways to high-paying, skilled careers right here at home.

Through Mississippi’s first formalized college network — the Greenville College Access and Attainment Network (GCAAN) — we’re helping students move from high school to college with the support, resources and mentorship they need.

This past fall, we celebrated the groundbreaking $1.2 billion Entergy investment, which will transform Greenville, Washington County and the greater Delta region. Entergy’s new combined-cycle combustion turbine facility will use dual-fuel technology, primarily natural gas with hydrogen blending capability, enhancing energy reliability while moving toward cleaner power. Scheduled for completion in 2028, this plant will be Entergy’s first newly built natural gas station in 50 years and is expected to bring valuable jobs to our residents.

To add another billion-dollar icing on the cake, the Kinder Morgan Mississippi Crossing Project, a $1.4 billion natural gas project, is designed to transport 1.5 billion cubic feet of natural gas per day from Greenville to Butler, Alabama, with a planned operation date of November 2028. This project will create 700 temporary construction jobs.

Health and food access for a thriving community

Beyond economic development, we’re prioritizing health and food security, recognizing that wellness is foundational to a thriving community. Through partnerships with Mars Food, Molina Healthcare and Kroger, we’re expanding access to nutritious foods, addressing food deserts, and ensuring every Greenville resident has healthy options.

In healthcare, Delta Health System’s Mississippi Delta Family Residency Program and Delta Health Center’s new clinic are not only providing much-needed medical services but also training future medical providers who are passionate about serving right here in the Delta. This work is about more than access; it’s about building equity in the health of our community.

A resilient infrastructure for Greenville’s future

Our infrastructure investments are reshaping Greenville. With $260 million invested in the Greenville Freight Corridor, we’re creating new efficiencies for local businesses and industries. We’ve committed $92 million for essential road, bridge and wastewater repairs, and an additional $50 million in funding is supporting flood recovery and building resilience against future disasters. These projects go beyond routine repairs; they’re about Greenville’s long-term sustainability and strength.

Delta culture shines in the “City of Festivals”

Greenville’s heritage is a source of pride, celebrated through an array of festivals that showcase the best of Delta culture. Newly dubbed the “City of Festivals,” Greenville is home to the Delta Hot Tamale Festival, (2024 USA Today No. 1 Specialty Food Festival); the Mississippi Delta Blues & Heritage Festival (world’s longest running blues festival), and a host of newer festivals and events. These gatherings draw thousands of national and international visitors and embody the unique community spirit that makes Greenville special. Our partnership with Viking River Cruises is another significant achievement, bringing tourists annually to experience our history, music and culinary traditions.

Business boom and community recognition

Our city’s economic resurgence extends to our business community. Greenville has seen record-breaking business openings, including national brands like NuFarm, Hobby Lobby, Chick-fil-A and Tru by Hilton, along with a boom in small, women-owned and minority-owned businesses. This growth reflects Greenville’s welcoming climate for entrepreneurs and business leaders who are breathing new life into our local economy.

Greenville’s commitment to creating a livable, family-friendly city has gained national recognition. We were honored with the City Livability Achievement Award from the U.S. Conference of Mayors for our “Worship on the Water” initiative, which fosters community connections, and the National Child Well-Being Champion Award from FoodCorps, highlighting our commitment to food education in schools. As chair of the Southern Municipal Conference, I am privileged to help lead conversations around solutions to shared challenges across Southern cities, driving positive change for the Delta and beyond.

Greenville’s global advocacy for the Mississippi River

As mayor of Greenville, I have the privilege of placing our city on the global stage, advocating for the Mississippi River’s significance to global food security, trade and climate resilience. Recently, I delivered a “TED Talk” style presentation at the U.S. Chamber of Commerce during the Building Resilience Conference in Washington, D.C. I addressed executives from Fortune 500 companies and federal agency representatives about the resilience-at-scale work cities are undertaking along the Mississippi River.

Together with 104 bipartisan mayors, we are collaborating with Ducks Unlimited to deploy 100,000 acres of nature-based infrastructure. This advocacy continues at international forums, such as COP26 in Glasgow, COP27 in Egypt and COP28 in Dubai, where I represented Greenville alongside mayors from around the globe, urging global investment in the Mississippi River Basin, which spans 10 states.

This collaborative work with local and international partners is essential for both food security and water quality. By highlighting the importance of the Mississippi River, we are not only advocating for our community but also positioning Greenville as a key player in the global conversation around sustainable development and climate resilience.

Greenville: A community that moves forward together

I invite you to see the progress happening in Greenville — a city bridging its rich past with a promising future. From our investments in cleaner energy and resilient infrastructure to the growth of new businesses and cultural festivals, Greenville embodies the spirit that is our Delta heritage. This is a community where opportunity meets ambition, and where every project, partnership and celebration is part of a larger story — a story of a Delta city with a legacy as rich as its future is bright.

Our journey is ongoing, but every day, I see Greenville becoming a place of hope and opportunity. We’re not just building for today; we’re building for generations to come, with Greenville as a model of what a city can achieve with vision, determination and the strength of its people.

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