Mississippi Economy

The Bureau of Economic Analysis estimates that Mississippi's total state product in 2003 was $72 billion. Per capita personal income in 2005 was $33,569, 50th in the nation (ranking includes the District of Columbia), but the cost of living in Mississippi is one of the lowest in the country. In contrast to one of the lowest per capita income rates in the United States, Mississippians consistently rank as one of the highest per capita in charitable contributions Generosity Index

Mississippi's rank as one of the poorest states can be traced to the Civil War. Before the war, Mississippi was the fifth-wealthiest state in the nation. [3] Slaves were then counted as valuable property and, in Mississippi, more than half the population was enslaved; in non-slave states, human capital was not included in estimates of wealth. Further, Mississippi's antebellum wealth rank should not be compared with today's GDP rank, which is an estimate of income; wealth and income are separate concepts. The war cost the state 30,000 men. Plantation owners who survived the war were virtually bankrupted by the emancipation of slaves[citation needed], and Union troops left widespread destruction in their wake.

A decision in 1990 to legalize casino gambling along the Mississippi River and the Gulf Coast has led to economic gains for the state. However, an estimated $500,000 per day in tax revenue was lost following Hurricane Katrina's severe damage to several coastal casinos in August 2005. Gambling towns in Mississippi include the Gulf Coast towns of Bay Saint Louis, Gulfport and Biloxi, and the Mississippi River towns of Tunica, Greenville, Vicksburg and Natchez. Before Hurricane Katrina struck the Gulf Coast, Mississippi was the second largest gambling state in the Union, ahead of New Jersey and behind Nevada.

On October 17, 2005, Governor Haley Barbour signed a bill into law that now allows casinos in Hancock and Harrison counties to rebuild on land (but within 800 feet of the water). The only exception is in Harrison County, where the new law states that casinos can be built to the southern boundary of U.S. Route 90.

Mississippi collects personal income tax in three tax brackets, ranging from 3% to 5%. The retail sales tax rate in Mississippi is 7%. Additional local sales taxes also are collected. For purposes of assessment for ad valorem taxes, taxable property is divided into five classes.