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>> HELLO AND THANK YOU FOR JOINING US, WELCOME TO ANOTHER EDITION OF@ISSUE WHERE WE DISCUSS AND DEBATE THE ISSUES FACING THE STATE OF MISSISSIPPI AND HOW THESE ISSUES IMPACT YOU.

IT'S THE EIGHTH WEEK OF THE 2020 MISSISSIPPI LEGISLATIVE SESSION AND LAWMAKERS IN THE HOUSE PASSED A PLAN TO ELIMINATE THE STATE'S INCOME TAX.

HOUSE BILL 1439 CALLED THE MISSISSIPPI TAX FREEDOM ACT OF 2021 PASSED BY A VOTE OF 85-34 TUESDAY.

PRIOR TO THE VOTE, REPUBLICAN HOUSE SPEAKER PHILLIP GUN CALLED EIGHT HISTORIC DAY FOR POLICY IN MISSISSIPPI.

>> THIS IS AN EXCITING DAY I THINK IN MISSISSIPPI.

THIS IS PROBABLY THE MOST HISTORIC POLICY CHANGE THAT'S EVER BEEN DONE, AT LEAST IN MY POLITICAL CAREER.

TODAY, WE'RE TALKING ABOUT THE MISSISSIPPI TAX FREEDOM ACT OF 2021, THE PURPOSE OF THIS LEGISLATION AS MANY OF YOU HEARD IS TO ELIMINATE THE INCOME TAX IN THE STATE OF MISSISSIPPI.

FOR EVERY MISSISSIPPIANS WHO PAYS AN INCOME TAX, A TODAY IS THE DAY THAT WE START DOWN THAT ROAD TO ELIMINATE THAT BURDEN FOR YOU.

AND I'M EXCITED TO STAND HERE BEFORE YOU TODAY AND TELL YOU THE DETAILS OF THIS, AND HOPEFULLY LET YOU UNDERSTAND EXACTLY HOW WE PROPOSE TO DO THIS.

THIS ENTIRE PLAN IS BASED ON UPON WHAT I DEEM TO BE SOUND TAX POLICY, MANY OF YOU WILL REMEMBER FOUR, FIVE YEARS AGO, WE HELD A SERIES OF HEARINGS IN THE SUMMERTIME, ONE OF THOSE WAS TO DEAL WITH TAX STRUCTURE, TAX BUDGET, BASIC TAX IDEAS.

WE HAD EXPERTS COME IN FROM WASHINGTON, THE TAX FOUNDATION, AND OTHER CONSERVATIVE THINK TANKS THAT TALKED ABOUT WHAT MAKES GOOD TAX POLICY.

AS MANY OF YOU WILL RECALL, THE ADVICE WAS TO MOVE AWAY FROM TAXES ON PRODUCTIVITY, WHICH WOULD BE AN INCOME TAX, AND MOVE TOWARDS TAXES ON CONSUMPTION, THEIR ADVICE WAS THE BETTER TAX POLICY, THE MORE SOUND TAX POLICY FOR STATES IS -- ARE THOSE STATES THAT HAVE A TAX STRUCTURE BASED ON CONSUMPTION, SALES TAXES, USE TAXES, THINGS OF THAT NATURE.

SO THEIR ADVICE WAS TO THE EXTENT THAT YOU CAN, YOU NEED TO MOVE AWAY FROM INCOME TAXES AND TOWARDS CONSUMPTION TAXES.

THAT IS THE FOUNDATION FOR WHAT WE HAVE ATTEMPTED TO DO IN THIS PLAN.

>> IF THE PLAN BECOMES LAW, LEGISLATURES SAY 1.9 BILLION DOLLARS OF INCOME AND GROCERY TAXES WILL BE RETURNED TO MISSISSIPPIANS ONCE FULLY PHASED IN AFTER TEN YEAR, IN YEAR ONE, THE AT ANY TIME SALES TAX ON GROCERIES, WHICH IS CURRENTLY SEVEN CENTS WOULD BE CUT IN HALF BY 2027, THREE AND A HALF HE CENTS, ALSO IN YEAR ONE OF THE PLAN, MISSISSIPPIANS WHO MAKE $50,000 A YEAR OR LESS WOULD NOT HAVE TO PAY ANY STATE INCOME TAX ACCORDING TO PARKER GUN, THAT'S NEARLY 60% OF RESIDENTS, COUPLES MAKING UP TO $100,000 A YEAR WOULD ALSO BE EXEMPT FROM THE STATE INCOME TAX.

FIVE YEARS INTO THIS PLAN, ANY MISSISSIPPIANS WHO MAKES $100,000 OR LESS WOULD PAY NO STATE INCOME TAX.

SPEAKER GUN SAID THAT'S MORE THAN 80% OF CURRENT TAX PAYERS, WITHIN TEN YEAR, HE SAID, THE STATE'S INCOME TAX COULD BE COMPLETELY ELIMINATED FOR ALL MISSISSIPPIANS.

BUT THAT LOST TAX REVENUE HAS TO BE MADE UP SOMEWHERE.

THE BILL PROPOSES INCREASING SALES TAX ON MOST RETAIL ITEMS FROM 7% TO THE.5%, THE SALES TAX OTHER ITEMS CURRENTLY TAX 5% OR LESS, MANUFACTURING MACHINERY VEHICLE, AIRPLANES AND CARS, THOSE WOULD BE INCREASED BY TWO AND A HALF PERCENTAGE POINTS.

HOUSE DEMOCRATIC LEADER ROBERT JOHNSON STOOD WITH SPEAKER GUN AND A DOZEN REPUBLICAN REPRESENTATIVES.

HE SAID HE AND OTHER DEMOCRATS ARE CONTINUING TO STUDY THE 300 PLUS PAGE PROPOSAL.

BUT HE'S ENCOURAGED BY THE OVERALL OUTLINE OFFERING A TAX CUT FOR WORKING MISSISSIPPIANS.

>> WE DIDN'T WANT TO SEE ANY CUTS IN THE BUDGET.

WE WANTED TO BE A WASH WHERE YOU WERE REPLACING MONEY, TAKING OUT OF THE BUDGET.

WE STILL NEED ROADS BUILT.

WE STILL NEED TEACHERS TO HAVE A PAY RAISE, WE STILL NEED INFRASTRUCTURE IMPROVEMENT IN SCHOOLS.

MEETING WITH THE -- WITH THE SPEAKER, WHAT I LIKE ABOUT THE BILL IS THAT YOU ARE APPROACHING A TAX CUT FOR WORKING PEOPLE.

PEOPLE WHO MAKE $50,000 OR LESS COUPLES WHO MAKE $100,000 OR LESS, THIS IS NOT A CUT FOR BIG BUSINESS.

IN FACT, THERE ARE, I MEAN ENCOURAGED BY THE FACT THERE ARE PEOPLE WHO HADN'T BEEN PAYING A REQUISITE AMOUNT OF TAX, THIS IS ME TALKING NOT THE SPEAKER.

HAVE NOT BEEN PAYING A REQUISITE AMOUNT OF TAX WILL NOW BE TAXED THAT HADN'T BEEN TAXED BEFORE.

MANUFACTURERS, PEOPLE IN THE INDUSTRY, TOBACCO, THEY HAVE A TAX, AUTOMOBILE DEALERS, MOBILE HOME MANUFACTURERS, ALL THESE PEOPLE GET TAXED AT A LOWER RATE THAN INDIVIDUALS IN THE STATE.

THE SPEAKER AS AS IDENTIFIED -- THIS COMMITTEE IDENTIFIED THAT IS A BURDEN THEY COULD SHARE A LITTLE BIT MORE AND SO THAT IS -- IT WON'T ALL BE ON MISSISSIPPI INDIVIDUAL TAXPAYERS, WE'RE ALSO CONCERNED ABOUT THE FACT THAT THE SALES TAX IS THE MOST REGRESSIVE.

OF THAT PART, MOST REGRESSIVE IS GROCERY TAX AND WE AGREE THAT NEEDS TO BE CUT AND IT WILL BE CUT.

I'M GOING TO SAY TELL YOU DEMOCRAT I KEEP LOOKING FOR THIS BILL AND THE TROW JEN HORSE AND THE TRICK, I DON'T WANT TO GET THEM IN TROUBLE BUT IT SOUNDS SOMETHING LIKE I WOULD WRITE THAN THEY WOULD WRITE.

IT DOESN'T HELP.

BUT WHAT I'M ENCOURAGED BY IS THAT THIS IS A BILL FOR PEOPLE WHO DON'T HAVE A LOBBY OR REPRESENTATIVE HERE, A BILL FOR WORKING PEOPLE IN THE STATE OF MISSISSIPPI.

WE'RE GOING TO CONTINUE TO LOOK AT IT.

MEET WITH PEOPLE INMY CAUCUS.

RIGHT NOW I'LL TELL YOU THE BIGGEST CONCERNS HAVE BEEN ADDRESSED AND WE'LL CONTINUE TO LOOK FORWARD TO WORK WITH THE HOUSE AND THE SPEAKER.

>> OTHER DEMOCRATS ARE CONCERNED THAT THE MEASURE WAS PASSED HASTILY AND WITHOUT MUCH STUDY.

THE BILL NEW MOVES TO THE SENATE.

DURING A PRESS CONFERENCE ONLY MINUTES AFTER PASSAGE, REPUBLICAN GOVERNOR TATE REEF SAID HE'S SATISFIED TO SEE LAWMAKERS MOVE TO ELEMENTARY THE STATE INCOME TAX BUT FINDS SOME PARTS OF THE BILL TROUBLESOME.

>> I'VE SPOKEN REPEATEDLY ABOUT THE NEED TO, DO SOMETHING BIG AND ELIMINATE THE INCOME TAX, WE STARTED THAT PROCESS FIVE YEARS AGO BY ELIMINATING THE 3% INDIVIDUAL INCOME TAX BRACKET THAT'S A GOOD START.

AND THE GOAL THAT THE HOUSE LEADERSHIP SAYS THAT THEY HAVE OF ELIMINATING THE INCOME TAXES IS ONE WE STRONGLY SHARE AND I AM VERY GLAD FOR THAT.

I THINK THE PIECES OF THAT PARTICULAR PLAN THAT RAISE TAXES ON INDIVIDUALS ARE PROBLEMATIC AND I THINK WHAT'S MORE PROBLEMATIC -- AND THIS IS SOMETHING THAT Y'ALL HADN'T WRITTEN A LOT ABOUT I GUESS BECAUSE IT WAS DONE IN A ZOOM MEETING OR SOMETHING -- BUT THE NEARLY 2 AND A HALF BILLION DOLLARS GAS TAX INCREASE THAT PASSED OUT AT COMMITTEE.

VERY CONCERNED ABOUT THAT.

THAT IS NOT SOMETHING THAT IS GOOD FOR THE TAX PAYERS OF THE STATE.

AND SO, YOU KNOW, IT'S VERY EARLY IN THE PROCESS, AND I AM VERY GLAD THAT THEY ARE TALKING ABOUT ELIMINATING THE INCOME TAX, I'M GLAD MORE AND MORE OF MY FELLOW REPUBLICANS ARE TALKING ABOUT THE ELIMINATION OF THE INCOME TAX, WE'LL SEE WHERE IT GOES FROM HERE.

I PERSONALLY SUPPORT TAX CUTS, NOT TAX SWAPS OR TAX TRANSFERS OR TAX INCREASES, AND SO AS WE MOVE THROUGH THE PROCESS, THAT'S WHAT WE'RE GOING TO BE FOCUSED ON IS FINDING A WAY TO GET TO A NET TAX CUT FROM MISSISSIPPI TAXPAYERS, AND I'M VERY, VERY INTERESTED IN THAT.

>> THE MISSISSIPPI HOUSE IS NOW BACKING AWAY FROM A PROPOSAL FOR A STATEWIDE ELECTION ON INCREASING THE TAX ON GASOLINE AND DIESEL FUELS IT WAS TO GENERATE MORE FOR STATE HIGHWAYS AND LOCAL ROADS, THE BILL DIED WHEN THE HOUSE DID NOT VOTE BEFORE A DEADLINE, MISSISSIPPI MOTOR FUEL TAXES 18.4'S A GALLON SINCE MEAN 87.

IT DOES NOT GENERATE ENOUGH REVENUE FOR HIGHWAY CONSTRUCTION AND REPAIR, THEY TO PROPOSED STATEWIDE ELECTION INCREASING TAX GAS 10 CENTS AND 14 FOR DESILL.

IT IS DISPROPORTION IN ITLY IMPACTING WOMEN OF COLOR.

HOUSE BILL 1238 AND 2709 WOULD HAVE EXEMPTED FEMININE CARE AND CONTRACEPTIVE PRODUCTS, BABY FORMULA AND DIAPERS FROM THE CURRENT 7% SALES TAX, WHICH IS THE HIGHEST RATE ON SUCH ITEMS IN THE NATION, THE SALES TAX ON MENSTRUAL PRODUCTS THE PINK TAX ELIMINATED IN MANY STATES, 601 FOR PERIOD EQUITY.

THE KNOWN-YEAR-OLD COLLEGE STUDENT TALKED WITH@ISSUE PRODUCER ASHLEY NORWOOD.

>> IN TERMS OF THIS ISSUE, WHO DO YOU SEE IT AFFECTING MOST IN MISSISSIPPI AND HOW?

.

>> JUST LIKE ALMOST OTHER ISSUES IN THE TO STATE, BLACK AND BROWN FOLKS ARE IMPACTED THE MOST, LOW INCOME FOLKS, YOU KNOW, PEOPLE WHO ARE DISABLED, PEOPLE WITH VARYING GENDER IDENTIFIES AND SEXUAL ASSAULTS, THE MOST MARGINALIZED IN THE STATE OF MISSISSIPPI ARE ALWAYS THE ONE WHO ARE THE MOST IMPACTED.

SO I FEEL LIKE, YOU KNOW, THIS IS JUST -- THIS IS NOT SOMETHING NEW, YOU KNOW, AND EVERY FACET OF MISSISSIPPI LIFE THE MOST MARGINALIZED COMMUNITIES ARE HIT THE HARDEST BECAUSE WE UNFORTUNATELY ARE HIT THE HARDEST BY POVERTY AND THINGS LIKE THE SALES TAX IS WHAT KEEPS PEOPLE FROM HAVING ACCESS TO THESE PRODUCTS.

AMONG A PLETHOR OF OTHER THINGS, JUDGE THE FACT TO THESE PRODUCTS ARE SOMETHING WE HAVE TO BUY IN THE FIRST PLACE.

>> ANTI-HAZING LEGISLATION IS MAKING ITS WAY THROUGH THE LEGISLATURE, HOUSE BILL 6 PASSED THE HOUSE AND HEADS TO THE SENATE.

THE MEASURE WOULD REQUIRE THE STATE COLLEGE BOARD TO CREATE A UNIFORM POLICY AGAINST HAZING FOR ALL OF UNIVERSITIES.

IT DEFINES HAZING AS RECKLESS ACTS CAUSING PHYSICAL OR EMOTIONAL HARM TO ANOTHER PERSON.

GREG HOLLOWAY IS ON THE UNIVERSITIES AND COLLEGES COMMITTEE.

>> WHEN THEY TAKE IT TO THE EXTREME, IT BECOMES A VERY SERIOUS PROBLEM AND IT'S A SITUATION IT'S A MATTER OF LIFE AND DEATH EITHER PERMANENT INJURY OR PERMANENT SICKNESS OR ILLNESS.

IT'S A SERIOUS SITUATION, THEY MAKE YOU DO THINGS LIKE DRINK ALCOHOL TO THE EXTENT THAT YOU CAN'T DRINK ANYMORE.

THEY HAVE YOU, IF YOU'RE NOT A SMOKER THEY MAY HAVE YOU TO SMOKE CIGARETTES AND THEY MAY HAVE YOU TO DO SOME VERY UNSCRUPULOUS THINGS THAT'S REALLY AGAINST YOUR WILL.

AND AGAINST YOUR NATURE.

IT'S A VERY, VERY SERIOUS PROBLEM ON COLLEGE CAMPUSES AND UNIVERSITY AND ORGANIZATIONS.

>> IF THIS BILL BECOMES LAW, THE COLLEGE BOARD WOULD HAVE TO IMPLEMENT A UNIFORMED POLICY FOR UNIVERSITIES BY AUGUST.

ANOTHER BILL HEADING TO THE SENATE HOUSE BILL FIVE WOULD FINE ORGANIZATION THAT IS KNEW OF HAZING BUT DID NOT REPORT IT.

UP TO $10,000.

ORGANIZATIONS WOULD ALSO LOSE PUBLIC DOLLARS THEY RECEIVE.

STUDIES SHOW NEARLY 60% OF COLLEGE STUDENTS INVOLVED IN FRATERNITIES OR SORORITIES, ATHLETIC TEAMS OR SOCIAL CLUBS EXPERIENCE SOME FORM OF HAZING.

TODAY, THE MISSISSIPPI DEPARTMENT OF HEALTH IS REPORTING 731 NEW CASES OF THE CORONAVIRUS AND 25 ADDITIONAL DEATHS.

THAT BRINGS THE TOTALS IN MISSISSIPPI TO NEARLY 295,000 CASES AND MORE THAN 6600 DEATHS OVER THE COURSE OF THE PANDEMIC SO FAR.

GOVERNOR TATE REEVES ANNOUNCED EARLIER THIS WEEK THE EXPANSION OF VACCINE ELIGIBILITY IN MISSISSIPPI, TEACHERS, SCHOOL EMPLOYEES AND FIRST RESPONDERS CAN NOW SCHEDULE A CORONAVIRUS VACCINE APPOINTMENT REGARDLESS OF AGE OR HEALTH CONDITION.

>>> MISSISSIPPI VACCINATION SITES HAVE BEEN OPERATING AT A HIGHER VOLUME THIS WEEK, THOUSANDS OF APPOINTMENTS THAT HAVE BEEN SCHEDULE DURING LAST WEEK'S HISTORIC WINTER STORM WERE RE SCHEDULED THIS WEEK, DR. THOMAS DOBB SAID THE DELAY WILL NOT HAVE A LASTING IMPACT ON THE STATEMENT LONG-TERM GOALS, THERE'S AT A DECLINING TREND IN COVID 19 CASES AND HOSPITALIZATIONS THANKS, IN PART TO THE CONTINUE ROLL-OUT OF COVID 19 VACCINES.

>> WE'RE STARTING TO SEE A DOWN TREND IN OUR COVID CASES, AND WE THINK MOST OF THAT IS BECAUSE OF BEHAVIORAL CHANGES.

BUT WE'RE ALSO STARTING TO SEE IMPACT WE THINK FROM THE VACCINATION AND YOU THINK ABOUT WE NOW HAVE ALMOST HALF OF ALL OUR 75 AND OLDER CROWD IMMUNIZED IN MISSISSIPPI AND ALMOST 40%, 65 AND OLDER, THAT'S GOING TO PAY REAL DIVIDENDS GOING FORWARD, WE CAN'T STOP NOW, WE GOT TO KEEP PUSHING THE PARK PAST YOU KNOW THAT 60, 70, 80% MARK SO WE CAN PROTECT MORE PEOPLE BROADLY MAKING GREAT PROGRESS, WE'LL GIVE WELL OVER 100,000 SHOTS THIS WEEK, WE NEED FOLKS TO GIVE IT TO, GO AHEAD GET VACCINATED.

>> DOBBS SAID THE SINGLE SHOT VACCINATION VACCINE DEVELOPED BY JOHNSON & JOHNSON WILL LIKELY BECOME AVAILABLE TO MISSISSIPPIANS AS EARLY AS NEXT WEEK.

>>> SO LET'S GET STRAIGHT TO THE POINT WITH NEWS FROM BOTH SIDES OF THE AISLE.

BRANDON JONES IS AN ATTORNEY AND FORMER DEMOCRATIC MEMBER OF THE HOUSE.

AUSTIN BARBER IS A NATIONAL REPUBLICAN STRATEGIST AND FOUNDER OF THE CLEAR WATER GROUP.

AUSTIN, BRANDON, GOOD TO HAVE YOU BACK WITH US AGAIN THIS WEEK AFTER WE HAD TO TAKE LAST WEEK OFF BECAUSE OF THE WINTER STORM.

IT WAS TOUGH TO GET A CREW TOGETHER.

LET'S TALK ABOUT THIS TAX BILL 300 PLUS PAGES, A BIG DEAL.

IT WILL TAKE AWHILE TO TALK OUR WAY THROUGH IT.

THE GOVERNOR MENTIONED HE'S NOT IN FAVOR OF ATTACK SHIFT, IS THAT NOT WHAT THIS IS AUSTIN, BECAUSE WE'RE TALKING ABOUT -- ELIMINATING THE STATE INCOME TAX, RAISING THE SALES TAX, PULLING BACK ON THIS TAX, RAISING THIS, SOUNDS LIKE JUST A BUNCH OF MOVING THINGS AROUND.

>> I THINK IT'S PRIORITIZING.

FIRST OF ALL, SPEAKER GUN TRAILER MAR, I BELIEVE JASON WHITE WAS ONE OF THE SPONSORS OF THIS BILL, THEY DESERVE A LOT OF CREDIT.

THEY'VE BEEN WORKING ON THIS THEY DIDN'T WAKE UP LAST TUESDAY AND GO, HEY, LET'S WORK ON THIS, THIS HAS BEEN WEEKS AND WEEKS OF TIME INTO THIS BILL, PROBABLY MONTHS AND MONTHS TO BE QUITE FAIR AND THEY DESERVE CREDIT.

CONSERVATIVES LIKE ME, WE WANT THIS, I'VE SAID THIS BEFORE, WE WANT TO HAVE A DEBATE, A REAL DISCUSSION ABOUT TAX REFORM, BUT HOW DO WE LOWER TAXES?

HOW DO WE MAKE MISSISSIPPI A PLACE WHERE PEOPLE WANT TO COME LIVE, START A BUSINESS, RAISE A FAMILY AND OBVIOUSLY ULTIMATELY RETIRE I THINK THIS IS ONE STEP TOWARDS MAKING MISSISSIPPI THAT KIND OF PLACE, ONE SMALL STEP.

OF COURSE, NOT EVERYBODY WILL BE HAPPY WITH EVERYTHING THAT'S IN THIS BILL.

THERE ARE A LOT OF GOOD PARTS IN THIS, YOU SPECIFICALLY ASKED ME THOUGH IS THIS A TAX SHELTER?

IS THAT WHAT THIS IS?

AND I THINK THIS TRIED TO FOCUS ON CONSUMPTION TAXES.

CONSERVATIVES BELIEVE LET'S BE -- LET'S FOCUS MORE ON CONSUMPTION TAXES, WHICH MEANS IF I CONSUME, IF I GO BUY A BOX OF DOUGHNUTS, BECAUSE I HAVE AN ADDICTION TO DOUGHNUTS, I'M GOING TO HAVE TO CONSUME MORE TACKS I'LL HAVE TO PAY MORE TAXES FOR THAT.

DON'T RAISE MY TAXES BASED ON HOW MUCH MONEY I MAKE.

THAT IS OBVIOUSLY A REGRESS AS IF TAX CONSERVATIVES THAT ARE NOT IN FAVOR OF.

SO WHEN THEY ARE WORKING ON THIS PATHWAY TO ELIMINATE THE STATE INCOME TAXES THAT ALL OF US HAVE TO PAY, BECAUSE WE MAKE MONEY IN MISSISSIPPI, WE BELIEVE THAT'S A GOOD THING, AND IF WE HAVE TO DO THIS IN SORT OF A SAFER WAY, SOME OTHER RESPONSIBLE WAY LET'S SHIFT SOME TAXES OVER HERE TO INCREASE IT, BECAUSE OF CONSUMPTION BECAUSE IT'S A SALES TAX, THAT THAT'S A GOOD START FOR THIS DEBATE.

>> I THINK IT PROCESS TELLS I WAS LOT.

SOMETIMES WHEN YOU'RE ANALYZING BILLS LIKE THIS THAT, THIS IS 308 PAGE BILL INTRODUCED 5:00 P.M. MONDAY AND PASSED OUT AT COMMITTEE AT 5:45 AND BROUGHT UP ON THE FLOOR THE FOLLOWING DAY.

LESS THAN 24 HOURS LATER.

NOW, I HAVE CONFIDENCE IN SOME OF OUR MEMBERS OF THE LEGISLATURE BUT I DO NOT HAVE CONFIDENCE IN 122 MEMBERS DIGEST A 308 PAGES OF HARD CORE TAX LEGISLATION IN THAT PERIOD OF TIME.

SO I THINK PROCESS STANDPOINT IT IS FAIR TO SAY WHY WAS THERE NOT A LITTLE BIT MORE ADVANCED NOTICE GIVEN AND WHY DIDN'T PEOPLE HAVE MORE TIME TO ZINC THEIR TEETH INTO THIS AND WE HEARD SOME OF THAT FROM THE MEMBERS ON THE FLOOR.

AUSTIN YOU TALKED A LITTLE BIT ABOUT TAX POLICY, I AM GOING TO JARGON CHECK YOU HERE, I THINK SALES TAXES AS BEE REGRESSIVE TAXES AND INCOME IS AS BEING PROGRESSIVE, WE TALK A LOT ABOUT HOW WE WANT TO DO TAX REFORM OF SOME KIND OR ANOTHER BUT IN STATE LIKE OURS, MISSISSIPPI WHERE WE STRUGGLE TO PAY SOME BASIC BILLS, THOSE BILLS LIKE THAT MAKE HAS LOTS AND.

>>.

>> MEDICAID.

>> AND THERE ARE SCHOOLS.

YOU HAVE TO -- PEOPLE DON'T KNOW ONE LIKES TO TALK ABOUT PAYING TAXES BUT EVERYONE BENEFITS FROM THE THINGS THAT TAXES PAY FOR.

AND SO I THINK WE HAVE TO KEEP EES ON WHERE WE ARE AND WE'RE IN THE MIDDLE OF A PANDEMIC AND SO MANY CHALLENGES.

BUT LET'S SAY WITH THE SPEED WITH WHICH THIS BILL CAME OUT AND WITH THE COMMENTS THAT WE HEARD FROM THE GOVERNOR A MOMENT AGO.

IT'S PRETTIEST THAT THERE WAS NOT A LOT OF CROSS TALK BETWEEN HOUSE LEADERSHIP AND GOVERNOR'S OFFICE, AND I HEAR THE SAME IS TRUE WITH THE SENATE.

TO ME, AS AN OBSERVER OF THE PROCESS, THAT MAKES ME THINK THAT MAYBE PASSING THIS BILL IS NOT THE THING, BUT MAYBE THERE ARE UNDERLYING POLITICS AT WORK, MAYBE IT'S TO MAKE A POINT, MAYBE IT'S TO ADVANCE SOME PART OF THIS, BUT JUST FEELS, AUSTIN, LIKE MAYBE THE IDEA IS NOT THAT SOMETHING PASSED THIS YEAR BUT THAT A POINT BE MADE.

>> I DON'T THINK LISTEN.

YOU WERE A MEMBER OF THE LEGISLATURE.

YOU WERE A GUY WHO GOT ELECTED EARLY AGE, YOU'RE STILL YOUNG, EVEN THOUGH AS WE WAKE UP EVERY DAY WE FEEL OLDER BUT YOU WERE THERE TO GET THINGS DONE.

I THINK THESE GENTLEMEN ARE THERE TO GET THINGS DONE.

I DON'T THINK THIS IS JUST AN ATTEMPT, WE'LL LET'S JUST -- LET'S GO AND LET'S PASS THIS OUT OF THE HOUSE AND IF IT HAPPENS IN THE SENATE WHATEVER I THINK THEY WANT TO DO THIS, LISTEN, I AM A BELIEVER IN LOWER TAXES.

I AM -- I WOULD -- I WISH I FELT COMFORTABLE, YOU KNOW, ALWAYS GOING TO BE CANDID AND TRANSPARENT I WISH I FELT COMFORTABLE ENOUGH TO SAY LET'S ELIMINATE THE SALES TAX AND INCOME TAX AND HAVE NOTHING OVER HERE TO TRY TO PROTECT THE GENERAL FUND, THE PRIORITY PROJECTS INFRASTRUCTURE, HEALTHCARE, EDUCATION, THAT NEED TO MAKE SURE THAT THERE'S MONEY THERE THAT WE GOT TO SPEND ON PARTICULARLY THOSE THREE PRIORTIES.

SO IF YOU ELIMINATED -- IF YOU ELIMINATED THE INCOME TAX BUT YOU DIDN'T HAVE SOMETHING OVER HERE TO BALANCE THE SCALES A LITTLE BIT, WHICH OBVIOUSLY THEY'RE DOING BY RAISING SALES TAX, THAT WOULD JUST CONCERN ME, I WISH WE COULD DO DO THAT AND MAYBE ONE DAY WE POSSIBLY CAN GET TO THAT POINT BUT I THINK THAT THIS IS JUST A WAY TO TRY TO ELIMINATE THIS INCOME TAX, MAKE MISSISSIPPI A PLACE WHERE YOUNG PEOPLE IN THEIR 20's AND 30's WHO ARE MAKING GOOD MONEY NOW, ENTREPRENEURS WANT TO COME THERE BECAUSE I CAN GO THERE, COST OF LIVING IS CHEAP.

I DON'T HAVE TO PAY INCOME TAX, LET ME GO THERE AND START THE NEXT BUSINESS, WE NEED TO BE A HUB FOR THOSE TYPES OF INDIVIDUALS AND THIS IS JUST A BALANCED YOU KNOW, SEMI RESPONSIBLE APPROACH TO TRYING TO DO THAT.

>> IS IT WORTH IT IN EXCHANGE FOR THE ELIMINATION OF THE STATE INCOME TAX TO HAVE A 9 AND A HALF %S SALES TAX RATE.

>> THAT WOULD BE EQUIVALENT TO WHAT THE STATE OF TENNESSEE DOES, THERE'S NINE, TEN STATES ACROSS THE COUNTRY THAT DON'T HAVE INCOME TAX, OR STATE INCOME TAX, THEY HAVE NO CONTROL OF THE FEDERAL GOVERNMENT.

THEY HAVE OTHER THINGS THAT BALANCE THOSE OFF.

TEXAS DOES NOT HAVE INCOME TAX.

YOU EVER LOOKED HOW MUCH PROPERTY TAXES ARE IN TEXAS?

THEY'RE RIDICULOUSLY HIGH.

TENNESSEE, NO STATE INCOME TAX.

BUT THEIR SALES TAX IS NINE AND A HALF PERCENT.

THAT WAS THE WAY THEIR LEGISLATURES GOT TO THAT BALANCING ACT.

>> THE GOVERNOR IS NOT INTERESTED IN THAT.

AND IT CREATES.

>> HE'S NOT INTERESTED IN FILLING THE HOLE.

WHAT DO YOU DO.

>> THE GOVERNOR CLEARLY STATED, WE JUST HEARD THE CLIP A MOMENT AGO, THAT HE WANTS TO TRY TO GET TO AN ELIMINATION OF OUR STATE INCOME TAX, BUT BY NOT RAISING ANY OTHER TAXES.

THAT IS THE DEBATE THAT WE NEED TO HAVE AS A CONSERVATIVES, AS A REPUBLICAN, I AM GLAD WE'RE HAVING THAT DEBATE.

>> AND THE PROCESS CONTINUE TO MOVE ON, AND WE'LL SEE WHERE IT GOES, BRANDON, YOU KNOW HOW THIS TRAIN, IS NOWHERE NEAR READY TO STOP.

>> THERE'S SOME CAUTIONARY TALES IN THIS SPACE, AS I HEAR THE GOVERNOR TALK ABOUT LET'S JUST DROP THE INCOME TAX WITH NOTHING ELSE TO DO IN THE TAX BASE, WE'VE SEEN STATES THAT DO THAT.

WE KNOW HOW THAT STORY ENDS YOU MEAN, GOVERNOR BROWN BACK HAD THE SAME IDEA SEVEN YEARS AGO, NOT SEVEN, EIGHT YEARS AGO, AND WHAT ENDED UP HAPPENING WAS HE WAS VOTED OUT OF OFFICE WITH THE STATE ECONOMY COLLAPSED THEN THEY HAD TO GO BACK TO THE INCOME TAX AND SO YOU'RE RIGHT.

AUSTIN, PEOPLE DO CARE ABOUT THE AMOUNT OF INCOME TAXES THEY PAY, TO QUESTION ABOUT THAT.

IT DOES FACTOR IN TO DECISIONS PEOPLE MAKE.

BUT I THINK ALSO QUALITY OF LIFE FACTORS IN TO THE DECISIONS THAT PEOPLE MAKE.

WHAT KIND OF STATE DO YOU HAVE WHEN YOU GET THERE?

YOU KNOW, IF I'M INVESTING A BUSINESS INTO A STATE LIKE MISSISSIPPI I WANT TO KNOW THAT I HAVE SCHOOLS MY CAN SEND KIDS TO, NICE ROADS, NICE -- IT'S AN ENTIRE PACKAGE OF THINGS THAT YOU HAVE TO LOOK AT WHEN YOU'RE SELLING YOUR STATE.

>> MY FRIEND, I TOTALLY AGREE WITH YOU.

THAT'S WHY WE MUST HAVE PRIORTIES.

WE DON'T HAVE UNLIMITED CASH LIKE TEXAS MAY HAVE OR FLORIDA MAY HAVE OR TENNESSEE AND NASHVILLE MAY HAVE.

WE HAVE TO SET PRIORITIES FOR THE THINGS WE DISCUSSED AND OBVIOUSLY ONE OF THEIR PRIORITIES NOW IS TO DO THIS, I HAVE TO SAY THERE ARE A LOT OF PEOPLE IN THE BUSINESS COMMUNITY WHO ARE CONCERNED ABOUT THIS BILL.

THEY MAY NOT BE OPENLY SAYING, YOU KNOW, 100% AGAINST THIS, BUT THEY'RE CERTAINLY ASKING QUESTIONS TRYING TO LEARN MORE, SO IT'S NOT LIKE THIS IS JUST SOME SLIPPERY SLOPE WHERE THIS THING WILL GO DOWNHILL AND EASLEY GET PASSED IN THE SENATE AND ON TO THE GOVERNOR.

AGAIN, YOU HAVE TO APPLAUD TRAILER MOORE AND THE SPEAKER AND JASON WHITE FOR THEIR APPROACH TO MOVING THIS FORWARD TO HAVING THIS DEBATE.

IT'S A VERY IMPORTANT FIRST STEP.

>> THEY CERTAINLY CREATED TEST ABILITIES BUT -- I'M NOT GOING TO APPLAUD THEM JUST YET.

IT'S AN IDEA.

I DON'T KNOW IF IT'S A GOOD ONE.

THERE'S A COUPLE THINGS IN HERE WE HAVEN'T TALKED ABOUT, WILSON, IF YOU'RE AN OLDER PERSON RETIRED, YOU'RE NOT PAYING MUCH INCOME TAX TO BEGIN WITH, SO THAT INCREASE IN SALES TAX IS A BIG DEAL.

SO THIS IS NEW TAX FOR THOSE FOLKS.

THEN WE HAVEN'T TALKED ABOUT THIS, AUSTIN, THERE'S A PART OF THIS BILL THAT HAS NOTHING TO DO WITH TAXES WHATSOEVER.

AND IT'S THE TEACHER PAY RAISE.

STUCK RIGHT IN THE MIDDLE OF THIS BILL.

>> WHY IS IT THERE IN THIS BILL?

THE SENATE ALREADY PASSED A TEACHER PAY RAISE BILL.

>> AUSTIN WILL HAVE SOME NICE CHUCK AND DRIVE ON THIS, YOU DON'T PUT THIS IN THE BILL UNLESS YOU'RE TRYING TO FORCE SOMETHING DOWN THE THROATS OF MEMBERS.

WHAT YOU'RE SAYING IS, LOOK, YOU WANT A TEACHER PAY RAISE, WE KNOW THAT'S POLITICALLY POPULAR, THE TIME IS RIGHT TO DO THAT.

VOTE FOR MY TAX BILL.

>> I HAVE NO IDEA, BUT I DO WANTS AT THE OLDER PERSON WHO MAY BE RETIRED STATE EMPLOYEE, COUNTY EMPLOYEE, CITY EMPLOYEE, WHO'S NOT PAYING INCOME TAXES NOW MAYBE 70 SOMETHING YEARS OLD OR, SO THEY WILL PAY MORE IN SALES TAX BUT THEY WILL SEE THIS REDUCTION IN THE GROCERY TAX.

>> ARGUMENT MAY BE THAT INDIVIDUAL, HE AND HIS WIFE, SHE AND HER HUSBAND MAY SPEND MORE MONEY AT THE GROCERY STORE THAN THEY DO ON OTHER PLACES THAT JUST CHARGE SALES TAX, SO THIS MAY BE A WIN OR NEUTRAL EQUATION FOR THEM.

WE'LL SEE.

>> ANOTHER TAX NOTE.

IT'S A SEPARATE BILL, WE ALREADY MENTIONED THERE WAS THE GAS TAX BILL WHICH DID NOT ADVANCE.

BUT THIS IS -- IT MOVED SIGNIFICANTLY ENOUGH THAT PERHAPS IT WOULD COME UP IN THE FUTURE.

DO YOU THINK THIS IS THE LAST WE'VE HEARD, AUSTIN, OF A GAS TAX BILL.

>> I THINK IN THIS SESSION IT IS, THE HOUSE CLEARLY SPOKE, YOU KNOW, THE WILL OF THE HOUSE CLEARLY SPOKE AND SAID WE DON'T WANT, YOU KNOW, THERE'S NO APPETITE TO VOTE ON THAT ON THE HOUSE FLOOR THIS SESSION.

>> REPUBLICANS PAINT THEMSELVES INTO A VERY DIFFICULT CORNER ON THE TAX QUESTION.

IT WAS POLITICIZED A LONG TIME AGO, THEY DEVELOPED AN ENTIRE COTTAGE INDUSTRY ON GETTING POLITICIANS TO SAY YOU WANT EVERY VOTE ON ANY TIME NO MATTER THE CIRCUMSTANCE, GOVERNOR REID IS ADHERENT THAT THAT CHURCH, WHAT THAT DOES IN POLICY MAKING IT LIMITS A TONE OF OPTIONS.

THE GAS TAX IS WHAT IS USED IN OTHER STATES TO FIX THAT, SAY YES WITHOUT MAKING OTHER PEOPLE VOTE BECAUSE WE WON'T POLITICAL DISTANCE FROM IT.

WE'RE IN A TAX PROBLEM IN THIS STATE.

TALK ABOUT IT.

>> TAX ISSUES CONSUMING THE LEGISLATURE RIGHT NOW?

>> I THINK THESE ISSUES, THIS PARTICULAR BALL OF TAX THAT WAS PASSED BY THE HOUSE, HAS THE POTENTIAL TO CLOSE DOWN A LOT OF GENERAL BILLS, AUSTIN, I THINK IT'S TAKEN UP THE IMAGINATION AND OXYGEN OF THE WHOLE ROOM.

>> OBVIOUSLY IT'S A BIG ISSUE, YOU KNOW, THE SPEAKER AND HIS LEADERSHIP TEAM WORKING DILIGENTLY ON THIS ISSUE, AND WE WILL SEE HOW IT'S RECEIVED BY LIEUTENANT GOVERNOR AND HIS LEADERSHIP GROUP.

>> WE'LL LEAVE THE BALL OF TAX THERE, WE'RE OUT OF TIME.

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