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In an effort to bolster Mississippi's struggling economy, state lawmakers have proposed a tax reform package that aims to increase revenue while providing relief for both businesses and individuals.One of the key components of the proposed tax reform is a decrease in the state's income tax rate for individuals and businesses. Under the proposed plan, the income tax rate would be reduced from 5.25% to 4.75% for individuals and from 3% to 2.5% for businesses. Proponents of the plan argue that this reduction will stimulate economic growth and attract new businesses to the state.In addition to the income tax rate reduction, lawmakers are also proposing an increase in the state's sales tax rate from 7% to 7.5%. This increase is intended to generate additional revenue for the state and offset the loss of income tax revenue resulting from the rate reduction. Critics of the plan have expressed concerns that the sales tax increase could disproportionately impact low-income individuals.The proposed tax reform package also includes a provision for a tax credit for businesses that locate or expand in economically distressed areas of the state. This tax credit is designed to incentivize investment in areas that have been struggling economically, with the goal of revitalizing these communities and creating new job opportunities.Governor John Smith has voiced his support for the proposed tax reform, calling it a "critical step in ensuring Mississippi's long-term economic prosperity." Smith is expected to work with lawmakers to refine the details of the plan and push for its passage in the coming months.If the tax reform package is approved, it is projected to take effect in the fiscal year 2027. Lawmakers are hopeful that the proposed changes will lead to increased revenue for the state and lay the groundwork for sustained economic growth in Mississippi.