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That historic income tax cut has yet to provide economic growth that supporters predicted

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Gov. Tate Reeves and legislative , especially House Speaker Philip Gunn, did a lot of chest thumping with the passage of a personal income tax cut in 2022.

The tax cut appears to be doing what was projected, at least in terms of generating less revenue to fund the state’s vital services.

Through nine months of calendar year 2023 — the first year of the phase-in of that much ballyhooed tax cut — the state has collected $276.9 million less in personal income taxes than were collected during the same period in 2022.

In 2022, the tax cut was touted as the largest in state history: a $525 million cut in the personal income tax over a four-year period. Based on tax collections during the first nine months of the phase in of the tax cut, it appears that the impact on state revenue might be more than the estimated $525 million.

The only problem with the tax cut at the time of passage, Reeves and Gunn argued, was that it was not big enough. They wanted the total elimination of the income tax, which accounts for about one-third of the total state general fund revenue. Some, most notably Lt. Gov. Delbert Hosemann and Senate Finance Committee Chair Josh Harkins, successfully resisted efforts to eliminate the tax.

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Granted, other factors might be contributing to the reduction in income tax cut revenue this year. But with record unemployment, which Reeves also likes to tout, and personal income growth that has occurred not only in Mississippi but nationwide, it is difficult to think of many reasons other than the 2022 income tax cut as the reason for the decrease in income tax collections.

Even as that massive tax cut is being phased in, the two candidates for governor, the incumbent Reeves and Democratic challenger Brandon Presley, already are proposing more tax cuts. Reeves still wants to phase in a complete elimination of the income tax, an estimated cost of $2 annually in ‘s dollars. Presley wants to eliminate or reduce the 7% sales tax on groceries, which is the nation’s highest statewide sales tax on food. Research in 2019 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.

As the state approaches the Nov. 7 general election, perhaps a closer examination of the 2022 tax cut is warranted.

Leading up to the 2022 tax cut, Reeves and Gunn argued that cuts in the personal income tax would result in more and not less state revenue. They contended Mississippians would use the money from their tax cuts to buy items, thus resulting in more state revenue from the 7% sales tax.

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Through nine months of the phase-in of the tax cut, it does not appear that is . While the state has collected $276.9 million less in income tax revenue than was collected during the same time in 2022, only $83.3 million more in sales tax revenue has been garnered. That is a net loss of nearly $200 million in revenue for calendar year 2023, based on a compilation of the monthly revenue reports from the Legislative Budget Committee staff.

If that trend continues, at some point the next governor and will be grappling with where to make budget cuts.

According to reports published by the Research Center in 2021 and 2022, the more effective way to grow state revenue, the and the state population is by expanding Medicaid instead of by cutting taxes.

Comparing the numbers from two separate reports, expanding Medicaid — which would result in significantly more than $1 billion annually from the federal to provide insurance to primarily the working poor — would have a much greater impact in Mississippi than eliminating the income tax. It should be pointed out the study at the time specifically probed a House plan being considered to not only eliminate the income tax cut but also reduce the grocery tax and car tags while increasing the sales tax on other items.

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Expanding Medicaid would result in higher wage growth, more state revenue, a stronger economy and even more population growth, based on a comparison of the two University Research Center reports.

Just looking at and wage growth by comparing the two reports, by the fourth year of Medicaid expansion, 11,081 jobs with an additional $812.4 million in personal income would be generated. For the tax cut plan, 1,815 new jobs and an additional $85.8 million in personal income would be generated.

As often has been reported, Reeves touts he is a numbers guy. Those are the numbers.

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

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Mississippi Today

Mike Chaney is not the first state politico to call for his elected post to be eliminated

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mississippitoday.org – Bobby Harrison – 2024-09-22 06:00:00

Insurance Commissioner Mike Chaney is not Mississippi’s first statewide official to advocate for his job to be changed from an elected post to an appointed one.

Earlier this month, Chaney called on the to eliminate the elected insurance commissioner position and instead have the ‘s insurance industry regulated presumably by an appointee of the governor who is confirmed by the Senate. Chaney said he is willing to serve for a short period of time in an appointed position.

William Winter successfully proposed to the Legislature in the 1960s that his post as be eliminated and the duties incorporated into other positions. Winter’s actions did not end his political career. He went on to serve in multiple other statewide elected post, as governor from 1980 until 1984 and is viewed as one of Mississippi’s most significant political figures.

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In the 1970s, John Ed Ainsworth ran for and was elected to the post of commissioner with the promise he would work to eliminate the position. One of his primary goals while eliminating the position was to ensure 16th Section land was properly managed to the benefit of . He succeeded and for his troubles was defeated when he later tried to run for lieutenant governor, though he is viewed favorably by many for his work in various of state , including in developing the state’s casino industry. The duties that the land commissioner had are now handled primarily by the secretary of state.

At least four previous statewide elected posts in Mississippi are either now appointed or have been eliminated. Besides the posts of land commissioner and tax collector being eliminated, the post of Supreme Court clerk was changed in 1976 so that the nine members of the Supreme Court appoint the clerk instead of the clerk being elected by . And in the 1980s, the elected state superintendent of education was made appointed. The superintendent is now nominated by the Mississippi Board of Education and confirmed by the Senate.

While the state superintendent of education and Supreme Court clerk are in the constitution and required an amendment approved by the voters to be changed, the land commissioner and tax collector needed only action by the Legislature to be eliminated.

Currently, the statewide posts of governor, lieutenant governor, auditor, attorney general, secretary of state and treasurer are all in the constitution, so it would take a vote of the people to change how they are selected or to eliminate any of them. The positions of insurance commissioner and commissioner of agriculture and commerce would require only action of the Legislature and the governor’s signature to make a change.

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When Chaney first ran for and was elected as insurance commissioner in 2007, he said the post should be appointed. Since then, Chaney has been reelected four times. He does not plan to run in 2027 and is saying now is the time to change how the insurance commissioner is selected.

Chaney said recently he believes an appointee “can do a better job regulating the industry and protecting the consumers” than someone elected to the post.

“I have grave concerns about someone running for this as a stepping stone to another position,” said Chaney, age 80. “It is too important to do that.”

He said it “is borderline unethical” to take campaign funds from the industry being regulated.

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Chaney said in 39 states the person regulating the insurance industry is appointed instead of elected.

Mississippi has eight statewide posts — more than most states, but there are states with more. For instance, neighboring Alabama has 10, but that includes three public service commissioners, all of whom are elected statewide. Mississippi also has three public service commissioners, but they are elected regionally.

Another neighbor — Tennessee — only elects its governor statewide. The lieutenant governor is elected by the members of the Senate.

Mississippi Lt. Gov. Delbert Hosemann, who is elected statewide, recently said on Mississippi’s Today “” podcast that the Senate would look at state government structure in the coming session, including whether Mississippi should elect so many positions.

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While some posts have been changed from elected to appointed, Mississippi legislators often have been reluctant to take the vote away from the people.

In the early 2000s, the House led by then-Ways and Means Chair Billy McCoy passed legislation to make the Transportation Commission appointed instead of elected. The proposal did not survive the process.

But in more recent times, legislators did vote to make all local school superintendents appointees of the local boards of education.

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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 1927

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mississippitoday.org – Jerry Mitchell – 2024-09-22 07:00:00

Sept. 22, 1927

Credit: Wikipedia

St. Louis native Josephine Baker became the first Black woman to star in a major motion picture. She played the role of Papitou in the French silent film, “Siren of the Tropics,” who, like Baker, found her true calling as a performer. 

The film’s led to other starring roles, an autobiography, the creation of a doll in her likeness and even a toothpaste commercial. 

At age 11, Baker had witnessed racial violence in East St. Louis, “watching the glow of the burning of Negro homes lighting the sky. We stood huddled together in bewilderment … frightened to with the screams of the Negro families running across this bridge with nothing but what they had on their backs as their worldly belongings.” 

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After working in some choruses on Broadway, she traveled to Paris, where she became the most successful American entertainer working in France. Picasso drew paintings of her, author Ernest Hemingway spent hours talking to her in Paris bars. During World War II, she aided the French Resistance by socializing with the Germans while secretly gathering information that she transmitted to England, sometimes writing the information in invisible ink on her sheet music. 

After the war, she received the Croix de Guerre, the medal of the Légion d’honneur and other medals. When she returned to the U.S., she refused to appear before segregated audiences, despite being offered up to $10,000 ($110,000 in ‘s money) to perform. She fought to prevent Willie McGee’s execution in Mississippi, and in 1951, the NAACP honored her with a “Josephine Baker Day” and a parade of 100,000 in Harlem. 

In 1963, she became the only official female speaker at the March on Washington. She adopted a dozen children in her lifetime from countries around the globe. She called her children the “Rainbow Tribe.” She played Carnegie Hall in 1973, the Royal Variety Performance in 1974 and a revue celebrating her 50 years in show business in 1975. 

After rave reviews, she died unexpectedly after experiencing a cerebral hemorrhage. More than 20,000 attended her funeral, where she received full French military honors. 

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Diana Ross portrayed Baker in her Tony-winning Broadway show, an HBO told her (for which Lynn Whitfield became the first Black actress to win an Emmy for Lead Actress in a Miniseries or Special), and she was depicted in the TV , “Lovecraft Country.” 

In 2021, Baker was inducted into the Panthéon in Paris — the first Black woman to this honor.

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 1955

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mississippitoday.org – Jerry Mitchell – 2024-09-21 07:00:00

Sept. 21, 1955

Moses Wright points at J.W. Milam as one of the kidnappers of his great-nephew, Emmett Till. Ernest Withers defied a judge’s orders and took this . Credit: Wikipedia

Moses Wright took the witness stand and identified the who kidnapped and killed his great-nephew, Emmett Till. 

“It was the first time in my I had the courage to accuse a white man of a , let alone something terrible as killing a boy,” Wright said later. “I just wanted to see justice done.” 

He worked as a sharecropper and was also a minister, whom the locals called “Preacher.” The two white men who abducted Till — J.W. Milam and his half-brother, Roy Bryant — threatened to kill Wright if he said anything. 

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“How old are you, Preacher?” Milam asked. Wright replied 64. “If you make any trouble, you’ll never to be 65,” Milam said. When the teen’s body was recovered from the Tallahatchie , Wright identified Till. Despite threats, Wright still took the witness stand. When the prosecutor asked him to point out Till’s abductors, he stood up, pointed his weathered finger at Milam and said, “There he is. That’s the man.” 

He testified that Bryant identified himself as “Mr. Bryant.” It may have been the first murder trial in Mississippi where a Black man testified against a white man. Even after the trial, the threats continued, and Wright left to join his in Chicago, where he had already sent them.

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

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