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EXCLUSIVE: Mississippi is set to become the tenth state to abolish the state income tax, with Governor Tate Reeves heralding this transformation as a pivotal moment for the state’s economy.
In an exclusive conversation with Fox News Digital, Reeves stated, “We are more competitive than we’ve ever been before. Lowering the tax on work, and ultimately eliminating the tax on work, is going to make us even more competitive.” His vision centers on fostering a business-friendly environment conducive to growth.
Earlier this year in March, Reeves signed legislation that will progressively lower the state income tax from 4% to 3% by the year 2030, eventually leading to its complete elimination. The governor emphasized that doing away with the state income tax will enhance Mississippi’s competitiveness relative to neighboring states like Texas, Florida, and Tennessee, all of which have already eliminated income taxes.
Reeves pointed to robust economic indicators as evidence of Mississippi’s growth trajectory. He mentioned that over the past four years, the state has experienced an influx of over $32 billion in new capital investments. Last year marked a significant milestone with the state recording the lowest unemployment rate in its history and achieving a record number of employed individuals. Furthermore, Mississippi’s economy was the second-fastest growing in the nation, with the state boasting the fourth-fastest growth in per capita income by 2024.
While discussing national tax policies, Reeves made it clear that he stands against raising taxes on any group. Referring to President Donald Trump’s fiscal strategies, which include proposed tax hikes for the wealthy, Reeves reiterated his commitment to lowering taxes. “I oppose raising taxes on anybody,” he declared when asked about the prospect of a small tax increase on millionaires.
The governor articulated a clear rationale for his tax elimination plan, stating it aims to relieve the tax burden on hard-working Mississippians as well as all Americans. He believes that government should take less from individuals, allowing them to retain more of their earnings. He mentioned, “We believe that the government ought to take less, so that individuals can keep more. That’s what we’ve tried to do in our state. We need more workers and more income in our state, and I believe if you want more of something, you ought to tax it less.”
Despite Governor Reeves’ firm stance against tax increases, he brushed aside concerns regarding potential economic fallout from Trump’s tariff approaches. He stated, “There’s no doubt that there are a lot of opinions about the Trump administration’s approach to tariffs, but let me just tell you what our experience has been. Mississippi has had tremendous success in the last four to five years in growing our economy.”
Reeves touted ambitious projections of over $75 billion in potential capital investments for Mississippi, arguing that the state’s investment landscape is more promising than ever. He believes that states like Mississippi will become major beneficiaries of Trump’s industrial policies aimed at rejuvenating American manufacturing.
“We never gave up on manufacturing. For years, we have invested in training our workforce for a manufacturing renaissance, and I think we’re on the brink of witnessing that in the United States,” he expressed confidently.
Looking ahead, Reeves assured citizens that Mississippi’s economy is destined to thrive. “It’s going to continue to boom,” he asserted, alluding to the state’s economic potential.
In addition to economic initiatives, Mississippi has initiated significant efficiency reforms through the Department of Government Efficiency, which has attracted attention for a recent report revealing over $400 million in government waste. State auditor Shad White humorously dubbed the report “MOGE.”
Reeves reflected on the state’s workforce management during his tenure as lieutenant governor, noting that between 2012 and 2020, Mississippi reduced its number of state employees from 33,000 to nearly 24,000—a decline of approximately 30%. Remarkably, he stated that the state maintained the same level of government service throughout this period.
He expressed that if such efficiency could be achieved at the state level, it should be possible in other government sectors, from localities to Washington, D.C. He focused on the federal government’s issues, particularly what he described as a spending problem. Aside from addressing state challenges, Reeves commended major figures like Elon Musk for their efforts to mitigate government waste during Trump’s first 100 days in office.
In conclusion, Reeves expressed a clear sentiment against irrational spending, particularly during the final year of the Biden administration, asserting that every American should support efforts aimed at reducing wasteful expenditures. His steadfast commitment to reducing taxes and fostering economic vitality stands out as a hallmark of his governorship, positioning Mississippi for a promising fiscal future.
