Thinks tax plan is misguided
Dana McLean (for whom I voted, she being a W grad) is quoted as saying that cutting the state income tax and raising the state sales tax “…puts money back in the pockets of Mississippians.” She illustrates by pointing out that someone making $50,000 a year will save $2,000. Checking the Mississippi Tax Calculator, I find that $40,000 earners would save about $1,500. $30,000 earners would save $935. $25,000 earners would save $685.
Sixty percent of Mississippi households earn $40,600 or less. Forty percent earn $31,000 or less. Two fifths earn $23,000 or less. A full 20 percent earn less than $8,500. For these people, the sales tax increase will be more than the income tax savings, and the poorer the taxpayer the greater the tax penalty. Our poorest citizens buy clothes, schools supplies, drug store stuff, gasoline and all the other items that allow life to continue as much as do our rich people. Cutting the grocery tax helps, but we should eliminate it altogether, as many states do.
That this move will hurt our businesses is obvious to all, especially our business owners.
Cutting income tax and increasing sales tax is simply a way to shift the tax burden from rich people to poor people–a terrible thing to do in the nation’s poorest state (our poverty rate is nearly double the national average). One way to even things up a little would be a huge luxury tax. Cars costing more than $70,000, houses costing more than a million, yachts, designer dresses, serious jewelry, WHAM! There is a surprising amount of revenue to be had this way. Or, how about a political contribution tax? You give $20,000 to a politician or political party, you pay $6,000 to Mississippi. You give more, you pay more. Small donations would be free. There would be lots of $19,999 contributions.
I encourage everybody to call Ms. McLean and their state senators and tell them to cast out this terrible tax plan.