BIPEC (Business and Industry Political Education Committee) has released its Legislator “Business & Jobs” Report Card for the 2021 legislative session. The BIPEC Report Card recognizes “Business & Jobs Champions” for their work supporting economic growth, job development, and business-related issues for the legislative session.
For over 40 years, BIPEC has been the organization that provides you with information to assess the legislature’s performance on business issues. The BIPEC “Business & Jobs” Legislator Report Card is THE resource for employers to gauge their legislator’s pro-business acumen.
The past two years have brought unprecedented challenges for businesses. It highlighted the importance of an organization like BIPEC that brings awareness to legislation that might bolster or harm Mississippi’s economy.
Included in the scorecard this year are votes on two bills in the House of Representatives to phase out the individual income tax. While exploring the elimination of the income tax has merit, their proposal would have imposed significant increases in sales taxes on certain business inputs.
House Bill 1439 would have increased taxes on the following industries: manufacturing, farming, timber, dairy, and automobile dealers. Electric power associations would have also faced increased costs that would likely be passed on to consumers, including business customers, in the form of higher rates. All businesses and industries would have paid 2.5% more in sales tax on purchases of business-related goods, services, telecommunications services, and utilities currently subject to the 7% rate.
Senate Bill 2971 was amended in the House to include a version of HB 1439. While the amendment removed tax increases on some industries, many still faced significant tax increases on business inputs. However, all businesses and industries would still have paid more in sales tax. The regular retail sales tax rate applicable to ordinary purchases of business-related goods, services, telecommunications services, and utilities would have increased from 7% to 9.5%.
Since the pro-business vote was in opposition to the legislation, many in the House of Representatives were negatively affected in their BIPEC grade.
We will continue to protect your interests by supporting candidates, promoting “Business and Jobs” champions, and educating our members and the public about important legislation and elections.