Monday, February 7, 2011

There's a hole in our bucket

Shockingly, 80% of Mississippi corporations pay no income tax. Yes, you read that correctly, only 1 in 5 corporations operating in Mississippi pay any income tax whatsoever. In a post on the Mississippi Economic Policy Center's blog, Sarah Miller passes along the staggering figures from the PEER Committee.

MEPC offers the possible solution of combined reporting, which would prevent companies from shifting their profits to related companies outside of Mississippi. It's this shifting of profits that allows 80% of corporations, and 67% of large corporations, to avoid paying any Mississippi income tax.

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