MS SB2858

Phases out income tax on the first $5,000 of taxable income gradually from 2018-2022, with complete exemption beginning in 2022 for all taxpayers.

Allows self-employed individuals to deduct a portion of federal self-employment taxes: 17% for 2017, 34% for 2018, and 50% for 2019 and thereafter.

Gradually reduces the corporation franchise tax rate from $2.50 per $1,000 of capital value (above $100,000 threshold) starting in 2018, declining by increments through 2027.

Repeals the entire corporation franchise tax law effective January 1, 2028, with the final tax rate of 25 cents per $1,000 in excess of $100,000 applying only through 2027.

Takes effect January 1, 2016, with transitional provisions preserving all existing tax claims and assessments accrued before the effective date.