MS HB1695

Phases out state income tax on the first $5,000 of taxable income beginning 2017, completing elimination by 2021, with no tax levied on this amount in 2021 and thereafter.

Phases out state income tax on the next $5,000 of taxable income (between $5,000-$10,000) beginning 2027, completing elimination by 2031, with no tax levied on this amount in 2031 and thereafter.

Reduces the corporation franchise tax rate from $2.50 per $1,000 of capital value to $0.50 per $1,000 between 2018-2025, with complete repeal effective January 1, 2026.

Allows self-employed individuals to deduct a portion of federal self-employment taxes as a gross income adjustment, increasing from 17% (2017) to 50% (2019 and thereafter).

Repeals all corporation franchise tax statutes effective January 1, 2026.