Hey Hawk, here's one for you.

[Tully Mars]

Check out this bill...it survived today's deadline:

HB 509 (http://billstatus.ls.state.ms.us/documents/2006/html/HB/0500-0599/HB0509IN.htm)

It would appear that there are lots of changes being proposed to our state tax code this year.

[aaron]

Says they are phasing out state income tax on corporations by 2009, but surely they are going to replace that with something.

[Tully Mars]

I'm not sure our S corp makes enough money to benefit form this. We pay accountants to maximize our keep money and minimize tax. Currently, we pay ourselves a reasonable living wage salary to manage the operation, which leaves the corp showing little profit on shares. But of course we have to pay income tax on the salaries we pay ourselves. I don't know if we'd be better off not paying ourselves the salary and taking the dividend profit tax incentive or keep doing what we are doing now. This, the accountant will have to answer. It seems at a glance that this legislation will benefit the S corps that make a lot more money than we do? :smt102

I am sure that it would benefit some corps. I am not sure how other states measure up in terms of their corporate tax laws but wouldn't it be interesting to see a sudden surge of large companies either setting up or transferring their corporate charters to MS because of this.