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Lawmakers consider cutting income tax for higher fuel taxes

MGN Online

Mississippi lawmakers could cut income taxes in exchange for higher fuel taxes to raise money for roads and bridges.

Posted: Feb. 1, 2018 3:46 PM

JACKSON, Miss. (AP) — Mississippi lawmakers could cut income taxes in exchange for higher fuel taxes to raise money for roads and bridges.

House Transportation Committee Chairman Charles Busby, a Pascagoula Republican, says House leaders are considering a plan to phase out Mississippi's 4 percent income tax bracket, which applies to an individual's yearly income between $5,001 and $10,000. In exchange, Busby says lawmakers would impose an additional 12-cent-per-gallon tax on gasoline and 15-cent tax on diesel, phasing it in over four years as the income tax is phased out.

Mississippi Department of Revenue figures show the 4 percent bracket raises $165 million, while fuel tax increases would be worth $302 million.

House leaders continue to make road money proposals. Lt. Gov. Tate Reeves says he's working on a plan, but hasn't offered details.

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