Mississippi to face challenges with tax cuts
Mississippi will face a $415 million tax cut to be phased in over the next decade, limiting the state’s budget for the upcoming years.
At the local level, State Rep. Rob Roberson, a Starkville Republican, said the cuts represent a wake up call for many politicians in the state. He said many don’t understand that with a tax cut, funds are far more difficult to allocate.
“It’s hard on the front sometimes to see where this is going to hurt or help, and how it’s going to af- fect things in the future,” Roberson said.
Roberson said one way for the state to soften the blow of these tax cuts is to “squeeze out” where there should have been less money spent in certain places.
To get ahead of itself, Roberson said Mississippi needs to have a conversation about what the state’s priorities need to be when spending its money. He specifically said it is important to look at new policies that could bring more businesses to the state, thus creating more jobs.
“Mississippi has not done a good job of having those debates,” Roberson said. “We are just going to keep making the same mistakes.”
Robinson said one of the biggest problems the state faces is a large number of counties, school districts and then an administration within each school district. He said the state needs to focus on creating a better balance.
Rather, Roberson said the state needs to center its focus on making changes internally, such as changing gears in terms of how the state approaches these problems.
One suggestion Roberson gave is to restructure the way children in Mississippi are educated and restructuring how the state allocates money from an administrative standpoint.
“We’ve really got to take the opportunity and look at this glass as though it is half full and not half empty, and be risk takers” Roberson said. “We are never going to accomplish anything without taking some risks.”
When asked if there will be any talk about big projects, like a statewide lottery, Roberson said these are definitely conversations that need to be had, but you have to be careful not to introduce a solution with possible problems attached to it.
“To suggest that there is one silver bullet that’s going to fix all of this is really not reality,” Roberson said. “It’s far more complicated than that.”
Julius Nukpezah, assistant professor of public policy and administration at Mississippi State University said based on the state’s current political climate, there needs to be a focus on how to make Mississippi more attractive.
This would include new policies geared toward making Mississippi more competitive among other southern states.
With the population of the state continuing to decline, he said if Mississippi wants to see sustained growth, the state can’t continue on the path it’s currently on. Although job markets and taxes are a big factor in the success of the state, he said it’s not the only thing in the equation.
Compared to the states surrounding Mississippi, Nukepezah said not only is the tax package for businesses not
attractive, but more than 50 percent of people live in a rural area, which makes an unattractive model.
When a state is looking to fix any type of financial crisis, he said the state can either decide to focus on short-term or longterm goals. He said Mississippi currently focuses on the shortterm and the result is not the economic transformation that many in the state want to see.
While looking into longterm plans can be beneficial, Nukepezah said they can be problematic in the present as well.
“The revenue cut may impact other welfare programs that are designed to help benefit the poor,” Nukepezah said.
Roberson said the state is already beginning to see the effects of the tax cuts. Although he doesn’t want to see anything happen to Oktibbeha County, he said that if in the long run the aforementioned policies benefit the state, then the changes made will be worth it.
“No politician wants their community to be the first one harmed,” Roberson said. “We have to look at those things and make the hard decisions.”
Roberson said another way to help the state with these tax cuts is for members of the community to invest in the community they live in. He said even the smallest laws and ordinances passed in a city can prove to be significant.
“For change to be worthwhile, it has to start at the local level,” Roberson said. “These little things that we start making decisions about now will matter.”