NFIB State Director Dawn McVea says the lack of legislative support for eliminating the state income tax highlights the need for other tax reform measures this session as small businesses continue to deal with inflation, supply chain issues and an ongoing lack of qualified job applicants.
“Legislative leaders say it’s unlikely that any plan to eliminate the state individual income tax has the votes to pass,” McVea said. “That hurts Mississippi’s small businesses, but it underscores the need for lawmakers to pass House Bill 1733 and Senate Bill 2449.
“HB 1733, which cleared the House on Tuesday, would let businesses take a full deduction on the cost of new assets in the year the purchase is made,” she said. “HB 1733 is commonsense legislation that would ease the financial pressure on Main Street businesses struggling to recover from the economic setbacks that began with the arrival of the pandemic in 2020. On behalf of our members, I want to thank the House for passing this important legislature and encourage the Senate to support it as well.
“Senate Bill 2449, meanwhile,would create a much-needed sales tax exemption on software services used as a business input,” McVea said. “Taxing business inputs in Mississippi is generally not done, so this legislation would rein in the overzealous Department of Revenue’s definition of this tax.
“That’s why we’re urging the legislature to pass these impactful measures,” she said. “Mississippi’s small businesses are dealing with everything from soaring inflation to shortages to staffing. These bills aren’t a cure-all, but they will provide financial relief that small businesses desperately need.”