TAXES
Miss. and Ky. moving toward dropping income tax
About 45 years have passed since a US state last eliminated its income tax on wages and salaries. But with recent actions in Mississippi and Kentucky, two states now are on a path to do so, if their economies keep growing. The push to zero out the income tax is perhaps the most aggressive example of a tax-cutting trend that swept across states as they rebounded from the COVID-19 pandemic with surging revenues and historic surpluses. But it comes during a time of greater uncertainty for states, as they wait to see whether President Trump’s cost cutting and tariffs lead to a reduction in federal funding for states and a downturn in the overall economy. Some fiscal analysts also warn the repeal of income taxes could leave states reliant on other levies, such as sales taxes, that disproportionately affect the poor. Eight states currently charge no personal income tax: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas and Wyoming. A ninth state, Washington, charges no personal income tax on wages and salaries but does tax certain capital gains income over $270,000. Republican Mississippi Governor Tate Reeves recently signed a law gradually reducing the state’s income tax rate from 4percent to 3 percent by 2030 and setting state revenue growth benchmarks that could trigger additional incremental cuts until the tax is eliminated. The law also reduces the sales tax on groceries and raises the gasoline tax. A 2022 Kentucky law reduced the state’s income tax rate and set a series of revenue-based triggers that could gradually lower the tax to zero. But unlike in Mississippi, the triggers aren’t automatic. Rather, the Kentucky General Assembly must approve each additional decrease in the tax rate. —ASSOCIATED PRESS
BOX OFFICE
‘Minecraft’ opens with $157m weekend
A Minecraft Movie, a Warner Bros. Discovery Inc. film based on the namesake video game, opened at No. 1 in US and Canadian theaters this weekend, marking the biggest debut for a film this year. The picture, co-produced by Legendary Entertainment, delivered weekend sales of $157 million, Warner Bros. said Sunday in a statement, storming past industry tracker Box Office Pro’s forecast of $85 million to $100 million. The film took in an additional $144 million in theaters internationally. Estimates for the movie soared last week based on advanced ticket-buying data. The live-action comedy and fantasy picture stars Jack Black and Jason Momoa as misfits pulled into a cubic world based on the game. The opening is good news for domestic theaters, which had seen ticket sales slide 11 percent before the start of the weekend. It’s also a welcome hit for Warner Bros.’ film chiefs, Michael De Luca and Pamela Abdy, who have come under scrutiny over profligate spending on titles with uncertain commercial prospects. — BLOOMBERG
APP STORE
Apple keeping TikTok available
Apple Inc., following assurances from the Trump administration, is keeping TikTok and other apps from ByteDance Ltd. on its US App Store for at least another 75 days. The iPhone maker on Saturday received a letter from Attorney General Pam Bondi telling the company it should follow President Trump’s executive order that will extend the pause on a TikTok ban in the US, according to people with knowledge of the matter. An Apple spokesperson declined to comment. “The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days,’’ Trump said in a post on his Truth Social platform on Friday. In February, Apple restored TikTok to its app store after receiving a similar letter from Bondi that provided assurances surrounding a January executive order from Trump that initially paused the ban. TikTok also remains available on Google Play, the Alphabet Inc. store available on Android devices. A Google spokesperson didn’t immediately respond to a request for comment. The latest extension came two days after US officials were close to securing a deal to create a US version of TikTok that would be majority owned by US investors. The agreement had the blessing of ByteDance but was nixed after Trump’s decision to impose sweeping tariffs on US trading partners, including levies that boosted the total rate on Chinese imports to 54 percent. — BLOOMBERG
