Mississippi Eliminates Income Tax: Gov. Tate Reeves Predicts Economic Boom and Efficiency Gains

Mississippi is about to join the ranks of states with zero income tax, and Governor Tate Reeves is not holding back his excitement, calling this "Mississippi's moment." The new law, signed in March, will gradually drop the state income tax from 4% to 3% by 2030, and eventually wipe it out completely. Reeves says this move puts Mississippi in the same league as tax-free states like Texas, Florida, and Tennessee, aiming to "level the playing field" and attract even more business and residents.

Reeves didn't waste time listing the state's recent economic wins: over $32 billion in new capital investment in the past four years, a record-low unemployment rate, and the second-fastest growing economy in America in 2024. Mississippi also claimed the title of fourth fastest-growing per capita income. It's not every day the Magnolia State makes national headlines for economic growth, so I bet folks are double-checking their maps.

On the national front, as debates swirl about possible tax hikes for millionaires, Reeves made it clear he doesn't support raising taxes on anyone. His philosophy? "The government ought to take less, so that individuals can keep more." He argues that lowering taxes encourages work and investment, saying, "If you want more of something, you ought to tax it less." Logic that even your grandma's lemonade stand could get behind.

When pressed about former President Trump's tariff ideas, Reeves brushed off concerns, pointing out Mississippi's economic surge in recent years. He's betting that states like his will be "huge winners" if manufacturing continues its return to the U.S. Reeves credited ongoing investments in workforce training and retraining as key to the state's readiness for a manufacturing boom.

State government efficiency is also in the spotlight. Reeves highlighted a nearly 30% reduction in state employees during his time as lieutenant governor, with services remaining steady. He believes if Mississippi can trim government fat, so can everyone else—including those folks up in Washington, D.C. (Imagine that.)

And not to be left out of the efficiency conversation, State Auditor Shad White recently tallied up $400 million in government waste. Reeves echoed calls to cut irrational spending, giving a nod to Elon Musk's efforts to root out waste at the federal level. As for the future, Reeves is bullish: "It's going to continue to boom."