In his State of the State address, Mississippi’s governor pushes for income tax elimination and opposes Medicaid expansion

By Rachel Greco

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In his State of the State address, Mississippi's governor pushes for income tax elimination and opposes Medicaid expansion

Jackson, Mississippi — In his Wednesday State-of-the-State Address, Republican Gov. Tate Reeves strongly urged the Legislature to pass legislation abolishing the state income tax, amidst a likely debate between Mississippi House and Senate leaders over plans to reduce state taxes.

“This money does not belong to the government,” Reeves stated about the income tax. “It belongs to the hard-working Mississippians who earn it.”

Last week, the House passed legislation that phased out the state income tax, reduced the state grocery tax, and increased sales and gasoline taxes. Over time, the plan would reduce the state’s current $7 billion general fund by approximately $1.1 billion.

Speaking to a joint session of the House and Senate on the Capitol’s south steps, Reeves appeared to support the House plan, stopping just short of endorsing it.

“This piece of legislation – which was passed by a large bipartisan majority by the way – shows us a realistic path to eliminate the tax on work in Mississippi once and for all,” Reeves tweeted. “Thank you to everyone who helped get this bill across the finish line in the House.”

The second-term governor made no mention of the House proposal’s provision to raise sales taxes and impose a new 5% gasoline tax. Reeves has previously stated that he opposes “tax swaps” that raise any taxes, even if the net result is a cut.

The Senate has yet to release a tax-cut plan, but Republican Lt. Gov. Delbert Hosemann, the Senate’s leader, has stated that he intends to do so soon. Reeves urged Hosemann and Senate leaders to “take action” on the House plan and deliver it to his desk.

“But please understand, doing nothing is not an option,” Reeves told the crowd. “Let’s get this done.”

Reeves, once again, urged lawmakers to oppose efforts to expand Medicaid coverage to the working poor, a policy he mocks as “welfare,” because President Donald Trump’s administration may make significant changes to Medicaid policy in the coming months.

“Medicaid changes, for example, are coming,” Reeves stated. “We don’t know what they will be yet. However, there is a strong possibility that those changes will result in increased spending by states that have implemented this type of welfare expansion.”

Medical leaders across the state have argued that expansion would provide more health care options to low-income Mississippians who cannot afford preventative care, and economists have predicted that expansion would benefit the state financially.

Neither legislative chamber has proposed a substantive proposal to expand Medicaid coverage, but Senate Medicaid Chair Kevin Blackwell and House Medicaid Chair Missy McGee advanced “dummy” bills out of their respective committees on Wednesday that could be used as a vehicle for potential expansion legislation.

House and Senate leaders have stated that the reason for passing dummy bills, or bills that only include the necessary code sections to meet key legislative deadlines, is due to the uncertainty surrounding the new Trump administration.

On Wednesday, state Senator David Blount, D-Jackson, delivered the Democratic response to Reeves’ address. He countered Reeves’ call to eliminate income taxes and urged Mississippians, regardless of party affiliation, to consider the need for health coverage through Medicaid expansion, more support for public schools and increased teacher pay, infrastructure improvements, and corruption elimination.

“In the past few years Mississippi has cut more than one billion dollars in annual taxes,” Blount informed the crowd. “Now, the Governor and House Republicans want to eliminate the state income tax. We believe that this is irresponsible.

Blount argued that the money Mississippi received from the federal government to aid the state during the COVID-19 pandemic has recently helped to shore up Mississippi’s budget, but it is a one-time payment that will soon expire.

The Hinds County lawmaker also argued that Mississippi should join the 40 other states that have passed legislation to expand Medicaid coverage to the working poor because the federal government will cover 90% of the costs.

Expansion would provide health insurance to tens of thousands of low-income working Mississippians whose income exceeds the state’s strict eligibility requirements for Medicaid but is insufficient to cover the cost of private insurance on the market.

“Just as importantly, closing the coverage gap will provide health insurance to more than 200,000 Mississippians who go to work every day in jobs that do not provide health insurance and who are one medical emergency away from bankruptcy,” according to Blount.

Reeves also highlighted recent economic investment in the state, urged lawmakers to revise accountability models for public K-12 education, and praised newly released data showing Mississippi public school students making progress in math and reading.

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Rachel Greco

Rachel Greco covers life in US County, including the communities of Grand Ledge, Delta Township, Charlotte and US Rapids. But her beat extends to local government, local school districts and community events in communities that surround Lansing. Her goal is to tell compelling stories about the area that matter to local readers.

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