No Deal on Louisiana's $1.3B Fiscal Cliff

Date: March 14, 2018

 

The Louisiana Special Session ended on March 4 without a deal on a plan to address the state’s pending $1.3 billion budget shortfall that will come after a slew of temporary taxes expire on June 30.

The bills in play would have raised taxes as well as implemented spending reforms. House Bill 8, sponsored by Rep. Walt Leger, would have generated $79 million in income taxes by ending taxpayers’ ability to deduct the previous year’s state income taxes and sales taxes from current year state income tax bills. House Bill 23, sponsored by Rep. Stephen Dwight, would have raised the state sales tax by a quarter-penny and eliminated some current sales tax exemptions, both of which would have raised about $290 million. House Bill 15, sponsored by House Speaker Taylor Barras, would have instituted a constitutional amendment that put a cap on new spending, pending voter approval.

Other spending and Medicaid reform bills depended on whether the tax bills could make it out of the house, but neither did. Although the House could technically bring these bills up again during the regular legislative session, it would take a two-thirds vote to do so, which seems far out of reach.

For Louisiana business owners, there a couple pieces of good news, however:

House Bill 2, which would enact some Medicaid eligibility checks, passed the House and has been referred to the Senate Committee on Health and Welfare. NFIB/LA supported this legislation in committee and, despite its changes, believes it’s a step in the right direction.

Additionally, the House unanimously approved the Louisiana Checkbook bill. If implemented, this website would be regularly updated to show how taxes are being spent by state and local governments across the state

Related Content: Small Business News | Economy | Louisiana | State

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