Big Tax Cuts Ahead? Speaker White and Lt. Gov. Hosemann Reveal Plans!
Get ready, Mississippi! The stage is set at our Capitol as our top legislative leaders unveil bold strategies that could redefine our state’s tax landscape and healthcare access. Over the next three months, as the 2025 legislative session kicks off, two pivotal issues are at the forefront: tax cuts and Medicaid expansion.
Lt. Gov. Delbert Hosemann is gearing up to champion a significant reduction in both the state’s income and grocery taxes, while House Speaker Jason White is aiming for an ambitious overhaul — a complete elimination of income tax coupled with a dramatic cut to grocery tax rates.
In a recent press forum, Hosemann proposed swift action: slashing the grocery sales tax from 7% to 5%, and reducing the income tax from 4% to a mere 3% over the next four years. This move could make Mississippi’s tax structure one of the most competitive in the nation!
Already, Mississippi is on a path to cut its income tax significantly. Following heated discussions in 2022, lawmakers initiated a plan to settle at a flat 4% tax on income exceeding $10,000 by 2026 — one of the lowest rates around. Under Hosemann’s latest proposal, this rate could shrink to an impressive 3% by 2030, allowing us to keep funding critical services like transportation and education.
On the other hand, Speaker White is advocating for an even bolder approach, aiming to phase out the income tax entirely over the next eight to ten years while slicing the grocery tax to just 3.5%. “It all needs to go,” he stated confidently, promising that such tax relief measures will be structured to ensure economic growth remains steady at 2-3% annually, thus sustaining our state’s revenue.
Did you know Mississippi currently holds the title for the highest grocery tax in the nation at 7%? This hefty tax, collected at the state level, is crucial for local municipalities. Both Hosemann and White are committed to ensuring that local governments remain financially stable if grocery taxes are reduced. Their plans may include allowing cities to enact additional local sales taxes to make up the difference.
Additionally, White is keen on ensuring that the Mississippi Department of Transportation has a reliable funding source for essential road projects, hinting at the possibility of raising our gas tax, which is already among the lowest in the country.
Medicaid Expansion: A New Opportunity on the Table
Both leaders are also revisiting the contentious topic of Medicaid expansion. However, they’re playing it cool, waiting for the new administration’s stance on potential changes to healthcare provisions. White mentioned they might “pump the brakes” on negotiations until they have more clarity from the upcoming Trump administration on work requirements for recipients.
Hosemann and Senate Medicaid Chair Kevin Blackwell have made it clear: any expansion plan must come with a work requirement. They’ve already reached out to the Centers for Medicare and Medicaid Services (CMS) about the potential for approval regarding this stipulation, understanding that the future of Medicaid rests on these negotiations.
Amidst these discussions, White remains optimistic, stating, “I don’t think Congress and the Trump administration will look to strip coverage from the working poor.” His resolve to pursue expansion demonstrates a commitment to improving healthcare access for low-income workers in Mississippi.
As we await the confirmation of Dr. Mehmet Oz as the new CMS administrator and further insights into federal policies, Hosemann anticipates a “dummy bill” to be introduced, essentially laying the groundwork for Medicaid expansion without locking in specific details just yet. This strategy keeps options open as discussions unfold.
Beyond Taxes and Healthcare: A Look Ahead
But wait, there’s more! Hosemann is also looking to tackle issues that matter to everyday Mississippians:
- Address chronic absenteeism in public schools
- Ensure the sustainability of the Public Employees Retirement System
- Establish tuition-free community college programs for last-dollar funding
Meanwhile, Speaker White is lining up his own initiatives:
- Reform certificate of need laws impacting medical centers
- Enhance transparency with pharmacy benefit managers
- Restore voting rights for individuals with nonviolent felony convictions
- Reinstate Mississippi’s ballot initiative process
- Legalize mobile sports betting
- Expand public education savings accounts for students in underperforming districts
Stay tuned, Mississippi! The 2025 legislative session promises to be a pivotal time for our state, and your voice matters. With bold plans on the table, the future is ripe with possibilities. Let’s engage in these critical conversations that will shape our communities for years to come!
