A bill that phases out the state income tax, cuts the state grocery tax and raises sales taxes and gasoline taxes passed the House of Representatives with a bipartisan vote on Thursday.  House Bill 1 — authored by Republican Rep. Trey Lamar of Senatobia and other House leaders – passed 88-24 with only Democratic House members voting against it. It now goes to the Senate for consideration. Nine House Democrats joined with the GOP majority to support the plan, and seven Democrats voted “present,” meaning they did not vote yes or no.  “A lot of my Republicans were speaking as one as a caucus that this is important to them and to their constituents,” House Speaker Jason White told reporters after the bill passed. “I think it’s a good, strong vote for us and it’ll be a strong position for me as speaker to advocate for its passage and advancement on the other (Senate) end of the building.”  The plan would over time cut about $1.1 billion from the state’s current $7 billion general fund money. Proponents say economic growth would cover the loss and not result in major cuts to government services or spending. Critics believe lawmakers should be cautious with long-term tax cuts and restructuring in the middle of an unstable economy, or oppose a shift to more “regressive” taxation that could hit lower income people harder.  The legislation would reduce the income tax rate from 4% to 3% next year. Then, it would reduce the rate by .3% each additional year until the tax is eliminated in 10 years.  The plan would add a 1.5% sales tax for local governments, unless they opt out, increasing the state’s net sales tax from 7% to 8.5%. The plan would over a decade reduce the tax on unprepared food from 7% to 2.5%, but the new local sales tax would still be levied on food, for a net 4% grocery tax once fully enacted. The sales taxes collected by counties would go toward local road maintenance. Some Democratic members, including House Minority Leader Robert Johnson III of Natchez, raised concerns that the measure does not contain enough safeguards to ensure that state government funds all of its needs and that the sales tax hike would negatively impact poorer Mississippians.  “This is putting a burden on working people,” Johnson told Mississippi Today.  Democratic Rep. Omeria Scott of Laurel introduced an amendment to immediately cut the grocery tax, instead of gradually reducing it over time, but Republican members defeated the amendment.  The legislation also adds a new 5% tax on gasoline sales, which would go toward the Mississippi Department of Transportation’s budget for road and bridge infrastructure.  The tax is expected to generate $400 million a year. Currently, Mississippi has an 18.4 cents-a-gallon flat tax on gasoline — a flat rate no matter the cost of a gallon. Transportation leaders have for years said they need an indexed tax that would rise with the cost of gasoline in order to generate enough money to keep up road maintenance. Using current average gasoline price in Mississippi of $2.62 a gallon, the proposed new tax would cost consumers 13 more cents a gallon. Willie Simmons, a Democrat who is the central district transportation commissioner, and Brad White, executive director of the Mississippi Department of Transportation, in a joint statement thanked House leadership for having substantive discussions about infrastructure funding, though they didn’t specifically endorse the legislation.  “HB1 accomplishes a significant net tax cut for the people of Mississippi while still taking strides to make our transportation dollars both reliable and adequate,” the two transportation leaders said. Both Speaker White and Lamar have said they believe Republican Gov. Tate Reeves supports the tax cut plan, but the governor’s office has not responded to questions about his stance on the House’s legislation.  Reeves in past years has opposed what he called “tax swaps,” tax cut proposals that sought to decrease the overall tax burden, yet raised another type of tax such as the latest House proposal. He’s also opposed past efforts to raise the gasoline tax.  Reeves, in 2021 notably opposed an effort led by Lamar and former House Speaker Philip Gunn that sought to eliminate the income tax and cut the sales tax on groceries in half while increasing the sales tax on other items by 2.5 cents on the dollar.  READ MORE: How soon we forget: Mississippi House push for record tax cuts revives fear of repeat budget crises “I wouldn’t want to be a Republican that votes to increase taxes substantially for certain segments of the public,” Reeves said during a 2021 news conference. “… I personally support tax cuts, not tax swaps or tax transfers or tax increases … I don’t think we ought to sit here and pick and choose who to take money from. I think we ought to take less from everybody.” Before Reeves can consider the proposal, though, it would have to pass the GOP-majority Senate which, in the past, has been more cautious with its tax cut plans and not agreed to totally abolish the income tax. In 2022 the chambers agreed and passed a large tax cut that is still being phased in. Republican Lt. Gov. Delbert Hosemann, the Senate’s presiding officer, previously said he will push a plan this year that immediately lowers the state’s 7% sales tax on grocery items to 5% and trims the state’s 4% income tax down to 3% over the next four years, though no senator has yet introduced such a bill.  Speaker White told reporters that he was willing to negotiate with Senate leaders on a tax cut package, but his ultimate goal is to send legislation to Reeves that would abolish the income tax.  The post House passes $1.1 billion income tax elimination-gas and sales tax increase plan in bipartisan vote appeared first on Mississippi Today.