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Tax cuts, rebates fizzle from lack of GOP support in Legislature

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Tax cuts, rebates fizzle from lack of GOP support in Legislature

With a Wednesday deadline for action on major tax cuts, elimination or rebates, Republican House and Senate leaders said such measures don’t appear likely, largely due to lack of support from fellow Republicans who hold supermajorities in both chambers.

“There’s tremendous support to eliminate the tax on work (income tax) in the Mississippi House of Representatives,” Ways and Means Chairman Trey Lamar, R-Senatobia, said Tuesday. “… But a small group in the Republican Caucus doesn’t want us to take it up, and we are on notice the Democrats are going to block vote against it. It’s a three-fifths vote, so that’s where it’s at.”

In the Senate, Republican Lt. Gov. Delbert Hosemann had vowed to push for income tax rebate checks for Mississippians. But Finance Chairman Josh Harkins, R-Flowood, on Tuesday said many in the Senate are more focused on “paying off debt, not taking on more debt, infrastructure needs and a lot of other financial issues to consider.”

READ MORE: Phase out income tax or cut taxpayers checks? GOP lawmakers, governor disagree

Hosemann late last week had lamented lack of support for his tax rebate checks proposal in the Senate and said, “I still think it’s a good idea.”

The Legislature, after much internecine Republican fighting that threatened to derail much other legislation, last year passed the largest income tax cuts in state history, to be phased in over four years. House Speaker Philip Gunn had pushed for eliminating the state income tax. Hosemann had pushed for more measured cuts. The end result: Mississippi after the cuts are fully made in 2026 will have one of the lowest income taxes in the nation.

READ MORE: 5 things to know about the Great Mississippi Tax Cut Battle of 2022

But tax revenue has continued to pour in at record pace, and there’s a $3.9 billion surplus in state coffers. This prompted Gunn to re-up his vow to eliminate the personal income tax, and Hosemann to advocate one-time rebate checks for taxpayers and talk of cutting or eliminating the state’s sales tax on groceries, among the highest in the nation.

Hosemann and Senate leaders said the national and state economies are in turbulent, inflationary times with recession possible, and that much of the state surplus is from unprecedented federal spending that isn’t likely to continue. They warn that fully eliminating the income tax in such uncertain economic times is foolhardy. Many state business leaders, including the state’s chamber of commerce,shared this trepidationlast legislative session.

Gunn and and House leaders said Mississippi’s economy is on a roll that will continue, and that eliminating the personal income tax would help the state compete for economic development. Gunn points to nine states with no income tax, including Florida, Tennessee and Texas, as having thriving economies and growing population.

Wednesday is the deadline for first floor action on revenue and appropriations bills. Since late last week, media, lobbyists and other observers had hovered around Ways and Means and Finance meetings, expecting them to roll out major tax cut or rebate bills. Both Lamar and Harkins had indicated such measures might be forthcoming.

On Tuesday, both indicated they are not forthcoming.

Leaders in both chambers on Tuesday said tax cuts could still be in the offing this session, and that bills are still alive where cuts or breaks could be added as amendments. But that becomes far more unlikely after Wednesday’s deadline, when introducing new tax cut legislation would require a two-thirds vote to suspend rules, a monumental hurdle.

Lamar on Tuesday said a “small number, maybe 10 or 12” of the 122-member House’s 76 Republicans indicated they didn’t want to take up income tax elimination. Other legislative sources reported more than double the number of Republicans Lamar reported were balking.

“I do chalk a lot of it up to it being an election year, although you would think during an election year they would want to eliminate the tax on work,” Lamar said.

Lamar said he would still be open to any tax cuts, including sales taxes on groceries.

“What I can tell you is the Mississippi House of Representatives has voted for income tax elimination, voted to cut car tags in half, and voted to cut grocery taxes in half. The Mississippi House of Representative’s commitment to tax reform is unquestioned … I believe with all my heart that ending the income tax, joining the nine other states that don’t have it, is the right policy for the future of Mississippi.”

Harkins said: “I thought we had a deal on taxes last year — to be worked in over four years. I feel like we settled the tax issue last year for the time being.”

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 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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