Louisiana members of the National Federation of Independent Business overwhelmingly oppose legislation that would eliminate the state’s refundable inventory tax credit.
That’s according to a special online and fax survey of NFIB/Louisiana members conducted Feb. 27-March 2.
“Unlike other business groups, our positions on public policy are basely solely on the input of our members, and when it comes to eliminting the inventory tax credit, our members were loud and clear,” said Dawn Starns, state director ofNFIB/Louisiana.
When asked whether the Legislature sure eliminate the refundable inventory tax credit from the 2015-16 state budget, 85.6 percent of respondants said “no,” compared with 11 percent who answered “yes” and 3.4 percent who were undecided.
“Our members understand that Louisiana is facing a $1.6 billion budget shortfall, but eliminating the refundable inventory tax credit would create big problems for small, family businesses,” Starns said.
Ted Firnberg, an NFIB/Louisiana member and owner of School Aids, said, “As an education supply retailer, I’m keenly aware of the challenges higher education faces in the governors proposed budget, but attempting to balance that on the backs of small businesses that are driving our economy is the wrong approach.
“This proposal will have an immediate and direct impact to our bottom line, which will have a ripple effect on hiring and expansion decisions, and that’s the opposite of what Louisiana should be doing right now,” said Firnberg, whose company has stores in Alexandria, Baton Rouge. Lake Charles and Shreveport.
It’s estimated that eliminating the credit would save the state an estimated $377 million a year, but that would amount to a $377 million tax increase the businesses that could least afford to pay, Starns said.
“The refundable inventory tax credit makes a big difference to the small businesses that pay local inventory taxes,” Starns said. “Small businesses operate on thin profit margins to begin with, and that refund can be enough to allow a small business to expand, hire an extra employee or, sometimes, keep the lights on.
“Small businesses can’t afford to pay higher taxes, especially now, as the state is finally recovering from the worse recession since the Great Depression,” Starns said. “That’s why NFIB is urging lawmakers to vote ‘no’ on any budget plan that would eliminate the refundable inventory tax credit.”
