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Tax cut supporters’ numbers might not tell the whole story

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mississippitoday.org – Bobby Harrison – 2024-09-29 06:00:00

Politicians often depend on numbers to make their argument. But numbers can be confusing and misleading.

Supporters of eliminating the income tax cite a lot of numbers to bolster their contention that the state can afford to phase out the tax.

Both Gov Tate Reeves and House Ways and Means Chairman Trey Lamar, R-Senatobia, recently cited some of those numbers during House Speaker Jason White’s daylong summit on the state’s tax structure. While White stressed that the summit was a “fact finding” mission, it is no secret that the speaker, Lamar and Reeves all are strong advocates of eliminating the state’s personal income tax.

The income tax accounts for between 25% and 30% of total general fund revenue even after the $145 million cut to the tax in 2016 followed in 2022 by a $525 million income tax cut that is still being phased in.

At the summit Reeves used the 2016 and 2022 income tax cuts “to dispel the myth” that complete elimination of the income tax would curtail jobs growth.

Since those previous two cuts, “our economy is thriving, private sector investment in our state has shattered records, and our unemployment rate is at an all-time low with more people working than ever before,” Reeves told summit goers.

The myth the governor cited – that cuts to the personal income tax would curtail jobs growth – has not been prevalent during debate of the issue. Instead, the main debate is whether eliminating such a large source of revenue would make it difficult for the state to provide vital services, such as for education, health care and law enforcement.

But the governor pointed to recent success in luring major economic development projects to the state, such as Amazon Web Services to Madison County and a plant to build electric batteries to power commercial vehicles to Marshall County. Both plants are major wins for the state.

But more to the point, Mississippi was in the bottom five states in the nation with jobs growth of 0.7% in 2023, according to the Bureau of Labor statistics.

 Perhaps that anemic jobs growth should not be blamed on the past tax cuts, but by the same token it is difficult to argue the tax cuts are spurring jobs growth.

While Reeves touts the state’s low unemployment rate, he fails to mention that Mississippi has the nation’s lowest workforce participation rate.

That might be why some business representatives at the summit cited workforce training, not tax cuts, as the top issue.

Lamar, on the other hand, made the forceful arguments that state services would be OK if the income tax is eliminated.

Since 1999, Lamar said, the state has averaged annual state general fund revenue growth of 3%. He said 3% growth equates to an extra $230 million per year – more than enough money from growth to afford to phase out the income tax.

In 1999, the total state general fund revenue was less than half of the $7.6 billion generated now by various taxes, primarily the sales tax and income tax. And 20 years from now, if the income tax is not eliminated, 3% will be a lot more than it is now.

Perhaps a simpler way to look at the numbers is that the tax on income generates almost 30% of state general-fund revenue.

When the $525 million 2022 tax cut is fully phased in, the income tax still will be the second largest source of general-fund money, generating about $2.2 billion annually, according to Senate Finance Chairman Josh Harkins, R-Flowood.

Plus, an important item to remember is that the $2.2 billion is in today’s dollars. A decade from now, two decades from now, the same levy on income will generate much more than $2.2 billion.

At White’s tax summit, Harkins pointed out the state has received an additional $33 billion in COVID-19 relief funds. That money went to state government, local governments, businesses and individuals and created a massive, unprecedented boon in state revenue.

That has generated tremendous surpluses, though state revenue collections have been slowing significantly during the past two years.

Even with the slowdown in revenue, the state still has tremendous reserves that make the beginning of the phase in of elimination of the income tax doable in the immediate future.

So, it is likely that no consequences of the tax cut will be felt during the remainder of Reeves’ tenure.

But the question is whether the state can still deal with losing more than one-fourth of its general fund revenue a decade or two decades from now when the federal government money spigot is not flowing so freely.

What will the numbers say then?

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

Mississippi Today

On this day in 1956

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mississippitoday.org – Jerry Mitchell – 2024-12-25 07:00:00

Dec. 25, 1956

Civil rights activist Fred Shuttllesworth Credit: Wikipedia

Fred Shuttlesworth somehow survived the KKK bombing that took out his home next to the Bethel Baptist Church in Birmingham, Alabama.

An arriving policeman advised him to leave town fast. In the “Eyes on the Prize” documentary, Shuttlesworth quoted himself as replying, “Officer, you’re not me. You go back and tell your Klan brethren if God could keep me through this, then I’m here for the duration.’”

Shuttlesworth and Bethel saw what happened as proof that they would be protected as they pursued their fight against racial injustice. The next day, he boarded a bus with other civil rights activists to challenge segregation laws that persisted, despite a U.S. Supreme Court decision that ordered the city of Montgomery, Alabama, to desegregate its bus service.

Months after this, an angry mob of Klansmen met Shuttlesworth after he tried to enroll his daughters into the all-white school in Birmingham. They beat him with fists, chains and brass knuckles. His wife, Ruby, was stabbed in the hip, trying to get her daughters back in the car. His daughter, Ruby Fredericka, had her ankle broken. When the examining physician was amazed the pastor failed to suffer worse injuries, Shuttlesworth said, “Well, doctor, the Lord knew I lived in a hard town, so he gave me a hard head.”

Despite continued violence against him and Bethel, he persisted. He helped Martin Luther King Jr. found the Southern Christian Leadership Conference and was instrumental in the 1963 Birmingham Campaign that led to the desegregation of downtown Birmingham.

A statue of Shuttlesworth can be seen outside the Birmingham Civil Rights Institute, and Birmingham’s airport bears his name. The Bethel church, which was bombed three times, is now a historic landmark.

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 1865

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mississippitoday.org – Jerry Mitchell – 2024-12-24 07:00:00

Dec. 24, 1865

The Ku Klux Klan began on Christmas Eve in 1865. Credit: Zinn Education Project

Months after the fall of the Confederacy and the end of slavery, a half dozen veterans of the Confederate Army formed a private social club in Pulaski, Tennessee, called the Ku Klux Klan. The KKK soon became a terrorist organization, brutalizing and killing Black Americans, immigrants, sympathetic whites and others. 

While the first wave of the KKK operated in the South through the 1870s, the second wave spread throughout the U.S., adding Catholics, Jews and others to their enemies’ list. Membership rose to 4 million or so. 

The KKK returned again in the 1950s and 1960s, this time in opposition to the civil rights movement. Despite the history of violence by this organization, the federal government has yet to declare the KKK a terrorist organization.

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

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Mississippi Today

An old drug charge sent her to prison despite a life transformation. Now Georgia Sloan is home

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mississippitoday.org – Mina Corpuz – 2024-12-24 04:00:00

CANTON –  Georgia Sloan is home, back from a potentially life-derailing stint in prison that she was determined to instead make meaningful. 

She hadn’t used drugs in three years and she had a life waiting for her outside the Mississippi Correctional Institute for Women in Pearl: a daughter she was trying to reunite with, a sick mother and a career where she found purpose. 

During 10 months of incarceration, Sloan, who spent over half of her life using drugs, took classes, read her Bible and helped other women. Her drug possession charge was parole eligible, and the Parole Board approved her for early release. 

At the end of October, she left the prison and returned to Madison County. The next day she was back at work at Musee, a Canton-based bath products company that employs formerly incarcerated women like Sloan and others in the community facing difficulties. She first started working at the company in 2021. 

“This side of life is so beautiful. I would literally hold on to my promise every single minute of the day while I was in (prison),” Sloan told Mississippi Today in December. 

Next year, she is moving into a home in central Mississippi, closer to work and her new support system. Sloan plans to bring her daughter and mother to live with her. Sloan is hopeful of regaining custody of her child, who has been cared for by her aunt on a temporary basis. 

“This is my area now,” she said. “This has become my family, my life. This is where I want my child to grow up. This is where I want to make my life because this is my life.” 

Additionally, Sloan is taking other steps to readjust to life after prison: getting her driver’s license for the first time in over a decade, checking in monthly with her parole officer and paying court-ordered fines and restitution. 

In December 2023, Sloan went to court in Columbus for an old drug possession charge from when she was still using drugs. 

Sloan thought the judge would see how much she had turned her life around through Crossroads Ministries, a nonprofit women’s reentry center she entered in 2021, and Musee. Her boss Leisha Pickering who drove her to court and spoke as a witness on Sloan’s behalf, thought the judge would order house arrest or time served. 

Circuit Judge James “Jim” Kitchens of the 16th District.

Instead, Circuit Judge James Kitchens sentenced her to eight years with four years suspended and probation. 

He seemed doubtful about her transformation, saying she didn’t have a “contrite heart.” By choosing to sell drugs, Kitchens said she was “(making) other people addicts,” according to a transcript of the Dec. 4, 2023, hearing. 

“I felt like my life literally crumbled before my eyes,” Sloan said about her return to prison. “Everything I had worked so hard for, it felt like it had been snatched from me.”

She was taken from the courtroom to the Lowndes County Detention Center, where she spent two months before her transfer to the women’s prison in Rankin County. 

Sloan found the county jail more difficult because there was no separation between everyone there. But the prison had its own challenges, such as violence between inmates and access to drugs, which would have threatened her sobriety. 

She kept busy by taking classes, which helped her set a goal to take college courses one day with a focus on business. Visits, phone calls and letters from family members and staff from Musee and Crossroads were her lifeline. 

“I did not let prison break me, I rose above it, and I got to help restore other ladies,” Sloan said. 

She also helped several women in the prison get to Crossroads – the same program that helped her and others at Musee. 

Sloan credits a long-term commitment to Crossroads and Musee for turning her life around – the places where she said someone believed in her and took a chance on her. 

Georgia Sloan, left, and Leisha Pickering, founder and CEO of Musee Bath, sit for a portrait at the Musee Bath facility in Canton, Miss., on Wednesday, Dec. 11, 2024. Pickering has supported Sloan through her journey of recovery and reentry, providing employment and advocacy as Sloan rebuilds her life after incarceration. Credit: Eric Shelton/Mississippi Today

Pickering, Musee’s CEO, said in the three years she’s known Sloan, she’s watched her grow and become a light for others. 

The bath and lifestyle company has employed over 300 formerly incarcerated women in the past dozen years, but Pickering said not everyone has had the same support, advocacy and transformation as Sloan. Regardless, Pickering believes each person is worth fighting for. 

When Sloan isn’t traveling for work to craft markets with Pickering, she shares an office with her Musee colleague Julie Crutcher, who is also formerly incarcerated and a graduate of Crossroads’ programs. She also considers Crutcher a close friend and mentor.

Sloan has traveled to Columbus to see her mother and daughter whom she spent Thanksgiving with. She will see them again for Christmas and celebrate her daughter’s 12th birthday the day after.

Her involvement with the criminal justice system has made Sloan want to advocate for prison reform to help others and be an inspiration to others.

“I never knew what I was capable of,” Sloan said.  “I never knew how much people truly, genuinely love me and love being around me. I never knew how much I could have and how much I could offer the world.”

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

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