JACKSON, Miss. (WJTV) – Tax cuts and finding funding for the Mississippi Department of Transportation (MDOT) are key issues during the 2025 Legislative Session. The House and the Senate have passed their own tax reform bills with major differences.

The Senate recently passed a $358 million tax cut bill, which includes lowering the state income tax.

“I think everyone in this building would love to get to a 0% income tax, no income tax, essentially. But we’re going to be more gradual about it. We want to we want to look at numbers as we go. We want to be more. I think that’s a more fiscally responsible approach because we don’t know what the state is going to look like in in four years from now,” said State Senator Jeremy England (R-District 51).

House lawmakers passed House Bill 1 at the start of the session with a plan to completely eliminate income taxes. Officials said the plan would bring about $1.1 billion in tax cuts over the next 10 years.

House Minority Leader Robert Johnson III (D-District 94) believes lawmakers should sit down and have conversations with economists and experts about tax reform.

“And included in that would be an income tax cut and a grocery tax cut if necessary. But you’d find a way to make it revenue neutral and still take care of the things you need to take care for the people of the state of Mississippi,” Johnson said.

The tax cuts will likely require joint negotiations and possibly a special session before a final plan is hammered out.