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A Tax Cut that Puts Working Families First

This year, President Trump and congressional Republicans delivered a historic tax cut that delivered tax refunds that were $350 higher than previous years, according to the latest IRS data. Now, I know that $350 won’t revolutionize a family’s budget, but I want to remind everyone that without this legislation, taxes would have actually increased by 22 percent this year. Take all of that into account and it’s a nearly $2,000 swing from what could have been – which is real money.

The tax relief came in a number of different forms, helping to benefit Mississippians from nearly every walk of life. Workers will benefit from no tax on tips or overtime. Families will benefit from an increased Child Tax Credit (now $2,200!) and the new Trump Accounts. Seniors will receive an added deduction of $6,000 to help compensate for the amount they’re taxed on their Social Security benefits. And even if you don’t qualify for any of those, the standard deduction was increased to $15,750 ($31,500 per couple), meaning that more of what you earn is now tax free. It’s truly tax savings for the whole family.

As State Treasurer, I’m not actually responsible for the collection of taxes (that’s the U.S. Treasury and the Mississippi Department of Revenue). Nonetheless, I can see the direct impact of tax cuts on the state’s economy – and eventually, on our cash flow. The more money that is returned to the pockets of hardworking Mississippians, the more money those Mississippians can invest back into our economy – in the form of purchases or job creation.

I have seen this up close through my unclaimed money program. Recently, we got results back that showed every dollar we return in unclaimed money gets recirculated seven times. Given that we’ve returned more than $170 million over the last five years, it plausible to say the economic impact has reached nearly a billion dollars. With this in mind, I do think we can assume the higher tax refunds will produce another economic rejuvenation in Mississippi.

Now, I want to be clear: As a conservative, I believe that taxes can almost always be lower. But given the fact that a 22 percent tax hike was knocking at our door, I’m grateful to President Trump and Mississippi’s Republican congressional delegation for fighting to expand the size of refunds for working Mississippians.

Mississippi is on the move, and policies like the working families tax cuts help keep that momentum going. When we trust our people, invest in our future, and keep more money in Mississippi hands, there’s no limit to what that economic freedom can achieve.