The Tax Foundation honored Lt. Gov. Tate Reeves and House Speaker Philip Gunn with its Outstanding Achievement in State Tax Reform award this week.
"Reeves and Gunn led the effort to begin phasing out the state’s archaic franchise tax, a tax on investment and capital formation in a state that needs more of both," a press release from the Tax Foundation says. "Beginning in 2018, the tax rate will drop in phases until complete repeal in 2028. The legislation also reduces the tax rate on low levels of income. Reeves and Gunn have also explored further tax reform options."
Reeves and Gunn brought the Tax Foundation to the Legislature last summer to work with a tax panel made up of lawmakers to look at the state's tax code. The conservative Tax Foundation favors relieving tax burdens on businesses, and their award follows the 2016 Legislature's passage of the Taxpayer Pay Raise Act, which will divert $415 million from the state's general fund in 12 years.