Here’s a look at the status of task force recommendations on Louisiana budget crisis.
Voters Say No to Eliminating Tax Deductions
When Louisiana’s 2017 legislative session begins in April, efforts to right the state’s financial ship may be hindered by public opinion about some of the options on the table.
On Election Day, voters said no—by a 56 percent vote—to Amendment 3, which would have removed a corporate tax deduction from the state constitution. The problem is that this amendment is similar to recommendations made by the Task Force on Structural Changes in Budget and Tax Policy. However, the concepts proposed are not new; they have also been presented before the Legislature in the past without much success. Key ideas include eliminating or restricting the state federal tax deduction for income taxes, phasing out the inventory tax and inventory tax credit, and lowering the sales tax rate but expanding it to more services.
The Times-Picayune reported that the Legislature may have to take a different tack if Louisianans will not support eliminating tax deductions from the constitution. One option might be getting rid of excess itemized deductions, which wouldn’t need voter approval.. Or if Gov. John Bel Edwards wants to try again on getting voter approval for removing tax deductions, a large-scale promotional and educational campaign can be expected. During an address to construction industry leaders, State Commissioner of Administration Jay Dardenne noted that the measure could go before voters again next year, according to the Greater Baton Rouge Business Report.
