Legislation has passed the Mississippi Senate that would, if enacted, reduce income taxes for corporate and personal taxpayers, create a deduction for self-employed individuals, and phase out the franchise tax. Specifically, the bill would phase out the income tax on the first $5,000 of taxable income by exempting the first $1,000 in 2015 and then increasing that amount by $1,000 per year through 2019. Further, a deduction would be allowed for self-employed individuals equal to 17% of the federal self-employment taxes in 2015, increasing to 34% in 2016, and 50% in 2017 and thereafter. Finally, the franchise tax would be phased out between 2016 and 2024 by decreasing the current tax of $2.50 for each $1,000 of the value of the capital used, invested, or employed in the state by $0.25 per year and then by repealing the law entirely. The bill was reported when it was introduced. (CCH TAXDAY, 2015/02/23, S. 10)
Feb 26
