MS SB2181

Removes the phase-out of income taxation on the first $5,000.00 of taxable income that was scheduled to begin January 1, 2018, reinstating a 3% tax rate on that income bracket.

Eliminates the deduction that allowed self-employed individuals to deduct a percentage of federal self-employment taxes (17% for 2017, 34% for 2018, and 50% for 2019 and thereafter) from gross income.

Removes the phase-out of the corporation franchise tax that was scheduled to gradually reduce from $2.50 per $1,000 of capital to zero by January 1, 2028, maintaining the $2.50 rate per $1,000 of capital (or portion thereof) on corporations.

Repeals Section 5 of Chapter 499, Laws of 2016, which had authorized the complete repeal of the corporation franchise law effective January 1, 2028.

Takes effect January 1, 2018.