Mississippi lawmakers are considering cutting the inventory tax in half, but only after the economy improves.
Republican Sen. Billy Hewes of Gulfport is pushing the plan, which passed the Finance Committee on Tuesday. He says Mississippi businesses would be more competitive if they paid a lower tax on goods waiting to be sold.
Opponents worry that changing the inventory tax will put county budgets in danger because money from the tax now helps support local government.
Under Hewes’ proposal, the inventory tax would drop 10 percent a year for five years, and state government would reimburse counties for the loss of revenue.
The inventory tax would start decreasing only after the economy shows steady growth for at least three years.
As usual the only thing that any of the guys and gals in Jackson worry about is commending someone, or creating a study or lowering taxes. The taxes thing is just ducky, but the state NEVER has enough cash to do what needs to be done…lowering taxes is not the way to accumulate a surplus. It is however a way to pay back someone’s contributors.