MS SB2750

Establishes an automatic income tax rate reduction mechanism triggered when General Fund revenue collections exceed the previous year's collections by at least 1.5% or the inflation factor (whichever is lesser), excluding federal stimulus payments.

Reduces the top income tax rate by 0.5% annually when the revenue trigger is met, with reductions effective January 1 each year, until the rate reaches zero percent and the personal income tax is fully repealed.

Increases the standard deduction from $5,000 to $10,000 effective for calendar year 2023 and all subsequent years, with tax on income above $10,000 taxed at 5%.

Requires the Commissioner of Revenue to calculate and certify whether the revenue trigger has been met by October 1 each year, using the Consumer Price Index for All Urban Consumers (CPI-U) South Region to determine the inflation factor.

Takes effect July 1, 2022.