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Proposal: eliminate income tax, add 5% tax on gas, allow cities, counties to levy local sales tax

  • A House committee passed a tax cut plan that aims to eliminate the state income tax over ten years and reduce grocery taxes from 7% to 2.5%.
  • The plan introduces a new 5% gasoline tax expected to generate $400 million annually for road maintenance.
  • House Speaker Jason White stated that the proposal will help build up Mississippi's competitive advantage.
  • House Democratic Leader Robert Johnson III expressed concerns about future revenue shortfalls due to the tax cuts.
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