Gov. Reeves Highlights Economic Growth, Tax Cuts in State of the State Address

Published 12:15 pm Friday, January 31, 2025

Gov. Tate Reeves delivered his 2025 State of the State Address on Tuesday. In it, he touted Mississippi’s economic growth and called for eliminating the state income tax.

Speaking from the steps of the Mississippi State Capitol, Reeves highlighted record-breaking private sector investments, job creation, and economic expansion. He credited conservative fiscal policies with driving Mississippi’s momentum and pledged to continue pushing for pro-business initiatives.

“Our goal is not just statistics, dollars invested, or jobs created,” Reeves said. “Our goal is families. We want Mississippi to be the best place in America to raise a family, keep one together, and have your kids raise your grandkids.”

Economic Growth and Job Creation

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Reeves called 2024 the “single greatest year ever” for the state’s economy, citing over $32 billion in new private sector investments since he took office in 2020. He pointed to significant projects, including Amazon Web Services (AWS) $10 billion investment in data centers in the Jackson metro area and a $2 billion manufacturing investment from Accelera by Cummins, Daimler Trucks & Buses, and PACCAR, which is expected to create 2,000 jobs.

On Monday, Reeves announced another $10 billion investment from Compass Datacenters in Meridian, tying the AWS project as the most significant private sector investment in state history.

“These aren’t just numbers on a page,” Reeves said. “There are thousands of good jobs for the people here.”

Push to Eliminate State Income Tax

Reeves renewed his call for Mississippi to eliminate its state income tax, arguing that doing so would make the state more competitive with neighbors like Texas, Tennessee, and Florida.

“The single best thing we can do for our state and her people is to eliminate our state’s income tax,” he said. “This money does not belong to the government. It belongs to the hard-working Mississippians who earn it.”

He urged the state Senate to pass House Bill 1, a measure advanced by the Mississippi House of Representatives that would eliminate the tax.

Energy and Infrastructure Initiatives

Reeves announced the launch of “Mississippi’s Power Play,” an initiative to expand the state’s energy infrastructure to support continued economic growth. He emphasized the need for increased energy production, including investments in nuclear power, natural gas, and renewable energy sources.

“As demand grows, we must aim higher,” he said. “What we are doing today is not enough.”

The governor also highlighted the Delta Blues Advanced Power Station, a $1.2 billion project in Greenville expected to provide electricity for 385,000 homes.

Education Achievements and Reforms

Reeves touted Mississippi’s progress in education, citing record-high test scores and graduation rates. According to the National Assessment of Educational Progress data, Mississippi’s fourth-grade students ranked first in reading and math growth.

However, he warned against lowering academic standards and criticized proposals to eliminate specific testing requirements.

“We cannot keep doing the same old thing and expect to get new and improved results,” Reeves said.

He proposed revising school grades, arguing that no school should receive an “A” or “B” rating if more than 70% of its students are not proficient in reading.

Political and National Outlook

Reeves expressed optimism for the state’s future under President Donald Trump’s second term, saying, “It’s morning in America again.” He praised Trump’s early actions, including withdrawing from the Paris Climate Agreement and reversing oil and gas drilling restrictions.

He also warned against expanding government assistance programs like Medicaid, arguing that Mississippi should instead focus on workforce development.