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In a move that aims to stimulate economic growth and attract new residents to the state, the Mississippi legislature has passed a bill to lower income tax rates for individuals and businesses. The bill, which was signed into law by Governor John Smith on Thursday, is set to go into effect starting in the 2026 tax year.Under the new law, the top individual income tax rate will be reduced from 5.5% to 5%, while the bottom rate will drop from 3% to 2.5%. This means that Mississippi residents will see a modest decrease in their tax bills, providing them with more disposable income to spend and invest in the local economy.In addition to lowering income tax rates, the bill also includes provisions to provide tax relief for small businesses. Small businesses with annual gross receipts of less than $500,000 will be eligible for a tax credit of up to $1,000, helping to alleviate the financial burden of operating a small business in a competitive market.Governor Smith praised the passing of the bill, stating that it will make Mississippi a more attractive destination for both businesses and individuals looking to relocate. "This tax cut is a win for Mississippians across the state," he said in a statement. "By putting more money back into the pockets of hardworking residents, we are creating a more prosperous future for Mississippi."The bill has received bipartisan support in the legislature, with lawmakers from both sides of the aisle recognizing the potential benefits of lowering income tax rates. Proponents of the bill argue that it will promote job creation, encourage investment, and help stimulate economic growth in the state.Opponents of the bill, however, have expressed concerns about the potential impact on state revenue and public services. Some critics have argued that lowering income tax rates could lead to budget cuts in essential programs such as education, healthcare, and infrastructure.Despite these concerns, supporters of the bill remain optimistic about the potential benefits it will bring to Mississippi residents. With the lower income tax rates set to take effect in the coming years, many are hopeful that the state will see an increase in economic activity and prosperity for all its residents.