House Speaker Philip Gunn proposes another plan to eliminate state income tax
House Speaker Philip Gunn has proposed another plan to eliminate the state income tax.
"Full income tax illumination can occur. We have contended that those revenue will continue to come in," Gunn said.
Gunn proposed another plan to eliminate the personal income tax based on new estimates of extra revenue Gunn claimed that the state is collecting.
"Right now, we have about $1.5 billion and excess revenues," Gunn said.
According to Gunn, if the current pace continues, the state will have an additional $2.5 billion in added revenue by the start of the fiscal year on July 1.
"We clearly believe that shows that income tax elimination is feasible," Gunn said.
Gunn's new plan phases out the personal income tax over the next 18 years, which would cut $100 million each year.
"I know people hear that number $100 million and think that's a lot of money, and it's a lot of money to be returned to the taxpayers. But on prospective bases that is one and a half percent of our budget on a dollar. That's a penny and a half," Gunn said. "So, it's a lot of money that we have to make up from other sources, and make sure that we have growth and those kinds of things."
Gunn explained how much extra money single and married couples would have to spend under his plan.
"That puts $1,300 a month back into the pockets of a citizen making $40,000 a year, $2,600 for a couple making $40,000 or $80,000 a year," Gunn said.
Gunn's plan still has not gotten support from Lt. Gov. Delbert Hosemann and the State Senate, which has presented its own revied tax proposal to suspect of state the gas tax for six months, cutting the grocery tax for 7% to 5%, and giving taxpayers a $1,000 rebate this year.
"So, I thought the senate plan was very strong for taxpayers, and I'm leery of doing more than that," Hosemann said.
Gunn said lawmakers would have the option to revisit his tax cut plan in six years and decide if they want to suspend the tax cut plan.