A look at the tax hike proposals legislators are debating.
Update: Louisiana’s Budget Mess
With less than a week left in the special session dedicated to addressing Louisiana’s historic financial crisis, Gov. Edwards and the Legislature are working toward consensus on how to plug a $900 million shortfall for the rest of this budget year (ending June 30) as well as a separate $2 billion shortfall for next year. The special session ends March 9, and regular session begins March 14.
Lawmakers and Gov. Edwards have agreed to some spending cuts—about $160
million across different state agencies—but there is still more
to be done. NFIB is working to stop tax increases on small business
- Inventory Tax Credit Repeal (House
Bill 46, 47 and Senate Bill 6) – Gov Edwards proposed a suspension of the
inventory tax credit to small business owners this year equating to an
unbudgeted expense on business having paid the inventory tax in good faith
based on the current law stating they are to be credited back what they
pay. NFIB has successfully bottled up those bills and has the support of
the House to pass this new tax and will continue to work to ensure the
Senate does not pass it either. - Telecommunications Tax (House Bill
72) – Gov Edwards proposed a tax increase on both landlines and cell
phones however NFIB successfully stopped this increase in the House
committee. We are still working to ensure the bill is not amended in the
Senate to return to an increase. - Eliminating federal income tax
deduction (House Bill 31)—This constitutional amendment, requiring
legislative approval as well as a vote of the people, would get rid of
individuals’ and businesses’ ability to deduct their federal income tax
payments from their state income tax bills. If this amendment were passed,
Gov. Edwards has proposed lowering income tax rates to compensate: from 2,
4 and 6 percent to 1.5, 3.5 and 5.5 percent.
Gov. Edwards has also
proposed a 1 cent increase in the state sales tax which is still under
negotiations.
