In case anyone doubts it, nearly every data point, research report, and trend line shows states with low- or no-income tax have stronger economies, faster population growth, and more robust workforces. But even without the reams of data, common sense dictates that living in a state without an income tax is significantly more attractive than having to pay for the privilege of having a job.

Thanks to the strategy and work of Empower Mississippi and the Mississippi Center for Public Policy (MCPP), the Magnolia State has improved its tax competitiveness over the last five years. Empower and the MCPP’s joint strategies and campaigns culminated this year when state leaders listened to the experts (along with the data and common sense) and passed a bill that will reduce and eventually eliminate the state’s income tax.

Laying the foundation

Empower Mississippi and the MCPP have long been the voices of liberty and responsible government in Mississippi. However, for too long, Mississippi’s economy struggled to keep pace with its neighbors, such as Florida, Tennessee, and Texas. States with lower or no income taxes have consistently outperformed Mississippi in job creation, business investments, and population growth.

And while these facts can sound like simple economic talking points, they have real impacts on the lives and livelihoods of Mississippi families.

As the perennial defenders of taxpayers and voters, the teams at Empower Mississippi and the MCPP knew something needed to change. So, in 2021, both organizations began working to improve Mississippi’s tax competitiveness.

For years, the MCPP’s research and commentary have helped influence and shape how tax policy has been discussed and debated.

In 2021, Empower Mississippi added work and labor policy as one of their main organizational pillars. At the core of this work is advocating for policies that ensure every Mississippian has the opportunity to find meaningful work.

With both organizations focused on improving the state’s competitiveness, they began setting the narrative around improving the state’s economic outlook. MCPP wrote numerous commentary pieces and a research report called Axe the Tax: The case for abolishing the state income tax in Mississippi about the real need to cut the state’s income tax and let Mississippi families keep more of their hard-earned money.

Empower Mississippi’s team released the report Better Jobs Mississippi: Tax Structure for Growth. In the report, Empower’s tax and budget experts showed how reforming the state’s tax and spending policies would improve Mississippi’s competitiveness.

Then in 2022, in large part due to Better Jobs and Axe the Tax, Mississippi leaders passed the largest (at that time) tax cut in state history. The state’s income tax was eliminated for single filers making under $18,300 and couples making under $36,600. For income over those amounts, the rate was phased down to 4%. These income tax cuts saved Mississippians over half a billion dollars.

But the work wasn’t finished.

After successfully reducing the state’s income tax, Empower and the MCPP got to work on eliminating it altogether.

The Empower team followed up their Better Jobs report with a new report in January 2025 titled Moving the Needle: Select Recommendations for Improving Mississippi’s Labor Force Participation Rate. In this report, Empower showed multiple ways to expand the state’s economy and improve the landscape for Mississippi workers. Front and center in the report was eliminating the tax on work.

Dovetailing with Empower’s research, the MCPP released a new report Eliminating the State Income Tax which showed specifics on the need for tax reform and the steps to make it a reality.

Moving the Needle and Eliminating the State Income Tax provided the necessary data, guidance, and framework for state leaders to responsibly move Mississippi in the right economic direction.

In addition to the reports, both organizations launched impressive outreach campaigns to reach legislators and voters.

Empower’s CEO Grant Callen discussed eliminating the state’s income tax with a number of guests on Empower’s podcast. The most notable guest was Trey Lamar, the chairman of the House Ways and Means Committee (the committee responsible for tax policy). Also, during the 2025 legislative session, Empower released a tax calculator where Mississippians could compare the impacts of the House and Senate income tax proposals on their personal finances.

MCPP ran a high-profile email campaign with their 80,000 email subscribers, educating them on the income tax proposals at the statehouse. The MCPP team also built the “Mississippi Freedom Index,” an online tool to allow local people to track where their lawmaker stood on key legislative issues, including income tax elimination. And finally, MCPP launched a wide-ranging social media and earned media campaign to discuss the importance of eliminating the state income tax.

Because of all this work, Mississippi legislators passed HB1, the income tax elimination bill, and Governor Tate Reeves signed it into law in March 2025. “This historic moment, over a decade in the making, is a massive win for Mississippi workers, families and businesses,” Empower’s CEO Callen said. “With the enactment of House Bill 1, our state is sending a clear message: ‘Mississippi is open for business.’ […] Eliminating Mississippi’s income tax will boost entrepreneurship and hard work by letting small business owners and families keep more of their money. Instead of penalizing productivity, this reform will free up cash to reinvest in growing businesses, creating jobs and strengthening local economies. It will make Mississippi a magnet for innovators and companies looking for a friendlier place to thrive, leveling the playing field and fueling an environment where both families and businesses can prosper.”

Award-winning success

Many SPN partner organizations have worked for decades to make real progress on improving their state’s tax competitiveness. Many are still working. In less than 5 years, largely because of the leadership from the Mississippi Center for Public Policy and Empower Mississippi, the Magnolia State has first cut, then eliminated its state income tax entirely. Empower and the MCPP have shown liberty advocates across the country how to responsibly—and effectively—reform income taxes and state spending. Because of this, they are both the deserving winners of the 2025 Bob Williams Award for Biggest Home State Win.

A state’s competitiveness is more than income tax rates and migration trends. It’s the difference between families just getting by and truly thriving. Now, thanks to these two SPN partners, not only are their state’s finances healthier and more prosperous, but Mississippi families are truly better off.