Jim Hood believes that hardworking Mississippi families deserve a tax break. When Mississippians go to the grocery store to buy food for their families, they pay an extra seven percent of their final bill in sales taxes. For many families, that extra cost is the difference between a few more containers of baby food or a gallon of milk for their children. Families with the lowest incomes often have the most trouble paying sales taxes. In 33 states across the nation, grocery goods are fully exempt from sales taxes and families don’t have to pay this extra burden just to put food on the table. Six more states tax groceries at a lower rate than their full sales tax rate and four states offer some form of tax credit or rebate to offset the costs. Mississippi levies its full sales tax rate on grocery goods. Jim Hood wants to move Mississippi in line with most states in the nation by reducing the rate families pay in sales taxes on grocery goods.
Cutting the grocery tax. Jim Hood thinks we can make a significant impact in the lives and pocketbooks of working families in Mississippi by cutting the sales tax rate on groceries by half. Under Hood’s plan, food purchased for home consumption would be taxed at a rate of 3.5 percent instead of the full 7 percent under current state law. Hood expects this reduction to save Mississippi households an average of $153 per year. The reduction in state revenue would be offset by eliminating waste and corporate tax giveaways to large, out-of-state corporations.
Hood will work with the Legislature to ensure sales tax diversions to local governments are not reduced as a result of his plan. One option is to divert all the revenue collected from internet sales taxes back to cash strapped local governments.
Providing tax relief for working families, not out-of-state corporations. For too long, legislative leaders like Tate Reeves have crowed about cutting taxes, but working Mississippians hardly see the benefit. Since 2012, Reeves has handed out $765 million in tax giveaways, mainly to benefit large, out-of-state corporations. For example, the Legislature eliminated the franchise tax that businesses pay on capital investment. By 2028, the current $276 million in franchise taxes, 79 percent of which is paid by out-of-state corporations, will be fully eliminated. When politicians crow about how many times they’ve cut taxes, look at your own pocketbook to see how much tax relief you’ve gotten.
As governor, Jim Hood will bring tax relief to working families by rolling back the sales tax collected on groceries.
Jim Hood is putting Mississippi families first!