According to the US Census Bureau, Mississippi was the leader in new business application use for the twelve months beginning January 2020.
Magnolia State rose more than 6,000 requests to 164 percent year over year, according to a report by Visual Capitalist.
In total, there were 492,133 new business applications in January 2021 – an increase of over 73 percent compared to the previous year.
The region with the highest growth rate was the South with 84 percent with more than 220,000 new business applications in the region (as of January this year).
“People became extremely innovative during Covid-19, partly because they were forced to do so due to job losses or loss of income. Economists call this “creative destruction,” where new innovation emerges due to the failure of certain industries or companies, “Visual Capitalist said in its report.
“The US Chamber of Commerce recommends business ideas that are pandemic-friendly.” Among many virtual-based ideas, the list includes:
- Digital marketing
- App development
- Fitness and wellness offers
- Box subscription services
“As business applications grow, more jobs could be created in the US and competition is likely to increase too. Starting a business during Covid-19 is risky, but it could pay off immensely for the people involved and the economy as a whole, ”said Visual Capitalist.
A policy change in Mississippi could combine well with the trend for new business applications in the state.
Mississippi House spokesman Philip Gunn on Monday advocated lifting income tax for most of the state’s residents.
Gunn’s suggestion would mean the first $ 47,700 would be tax-free. For married couples, the threshold would rise to $ 95,400.
“Instead of asking if we can afford to end the income tax, we should ask if we can afford not to,” said Douglas Carswell, president of the Mississippi Center for Public Policy, a conservative think tank. “Fast growing southern states like Texas, Tennessee, and Florida have no income taxes. As a result, incomes are rising in these states and job creation is flourishing. Mississippi could do that too. “
The State Director of the National Federation of Independent Businesses, Dawn Starns McVea, responded to Gunn’s statement, in line with Governor Tate Reeves’ suggestion:
“Our members are 100% behind it. Most small businesses are organized as pass-throughs, which means they pay taxes at the individual rate rather than the corporate rate. The abolition of income tax would bring much-needed financial relief to small business owners struggling to recover from the economic crisis caused by the Covid-19 pandemic. “
Skeptics claim the rate will hamper the state’s educational system as well as roads and bridges.
Income tax is “progressive” in that it increases with the solvency of the individual.
Supporters respond that changing policies would give the economy a shot in the arm.