MS SB2769

Removes the scheduled phase-out of income taxation on the first $5,000.00 of taxable income, restoring a flat 3% tax rate on this income bracket effective January 1, 2018.

Eliminates the deduction allowing self-employed individuals to deduct a portion of federal self-employment taxes (17% for 2017, 34% for 2018, and 50% for 2019 and thereafter).

Removes the scheduled phase-out of the corporation franchise tax, maintaining the $2.50 per $1,000 of capital tax rate (or in excess of $100,000) instead of the gradual reduction that was set to conclude January 1, 2028.

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

Effective date is January 1, 2018.