MS SB2342

Removes the scheduled phase-out of income taxation on the first $5,000 of taxable income that was set to begin January 1, 2019, restoring the 3% tax rate on this income bracket.

Eliminates the deduction for self-employed individuals of a portion of federal self-employment taxes (which was scheduled to increase from 17% to 34% to 50% through 2019).

Removes the scheduled phase-out of the corporation franchise tax that was set to gradually reduce from $2.50 per $1,000 of capital value to zero by January 1, 2028, keeping the tax at $2.50 per $1,000 (on capital over $100,000).

Repeals Section 5 of Chapter 499 (Laws of 2016), which had authorized the complete elimination of the corporation franchise tax effective January 1, 2028.

Effective date: January 1, 2020.